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Baladang company considers introducing a new product to the market. Baladang conducted a market feasibility study just now. According to a report from the study,
Baladang company considers introducing a new product to the market. Baladang conducted a market feasibility study just now. According to a report from the study, the company should buy a stateoftheart manufacturing machine right now, whose economic life is two years with no residual value. The report predicts that this project will generate unlevered net incomes for next two year with associated working capital as below. If the company uses a straightline depreciation method, what is the net present value NPV of this project for the decision making as of now? Following the convention, assume that all future cash flows will occur at the end of their relevant periods. The answers are expressed in million eurosFeasibility study, mNOPAT, mWorking capital, mInvestment, mTax rate, Required return,
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