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b) You are helping a manufacturing firm decide whether it should invest in a new plant. The initial investment is expected to be S 50

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b) You are helping a manufacturing firm decide whether it should invest in a new plant. The initial investment is expected to be S 50 million, and the plant is expected to generate after-tax cash flows of $ 5 million a year for the next 20 years. There will be an additional investment of $ 20 million needed to upgrade the plant in 10 years. If the discount rate is 10%. i. Estimate the Net Present Value of the project 7 marks) ii. Should this project be accepted or rejected? Explain your answer?(3 marks) iii. Estimate the Internal Rate of Return for this project. mar

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