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Applied Nanotech is thinking about introducing a new surface cleaning machine. The marketing department has come up with the estimate that the company can sell
Applied Nanotech is thinking about introducing a new surface cleaning machine. The
marketing department has come up with the estimate that the company can sell units
per year at $ net cash flow per unit for the next four years. The engineering
department has come up with the estimate that developing the machine will take a $
million initial investment. The finance department has estimated that a discount rate of
percent should be used.
What is the basecase NPVA negative answer should be indicated by a minus
a sign. Do not round intermediate calculations and enter your answer in dollars, not
millions of dollars, rounded to decimal places, eg
If unsuccessful, after the first year the project can be dismantled and will have an
aftertax salvage value of $ million. Also, after the first year, expected cash flows
b will be revised up to units per year or to units, with equal probability. What is the
revised NPVDo not round intermediate calculations and enter your answer in
dollars, not millions of dollars, rounded to decimal places, eg
Answer is complete but not entirely correct.
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