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ASAP:You are thinking of making an investment in a new plant. The plant will generate revenues of $ 1 , 0 0 0 , 0
ASAP:You are thinking of making an investment in a new plant. The plant will generate revenues of $ per year for as long as you maintain it You expect that the maintenance cost will start at $ per year and will increase per year thereafter. Assume that all revenue and maintenance costs occur at the end of the year. You intend to run the plant as long as it continues to make a positive cash flow as long as the cash generated by the plant exceeds the maintenance costs The plant can be built and become operational immediately. If the plant costs $ to build, and the interest rate is per year, should you invest in the plant?
The net present value NPV is $ Round to the nearest dollar.
Since the NPV is negative build the plant. Select from the dropdown menus.
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