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Birkenstock is considering an investment in a nylon - knitting machine. The machine requires an initial investment of $ 2 7 , 7 0 0
Birkenstock is considering an investment in a nylonknitting machine. The machine requires an initial investment of $ has a year life, and has no residual value at the end of the years. The company's cost of capital is Known with less certainty are the actual aftertax cash inflows for each of the years. The company has estimated expected cash inflows for three scenarios: pessimistic, most likely, and optimistic. These expected cash inflows are listed in the following table. Calculate the range for the NPV given each scenario. Click on the icon here in order to copy the contents of the data table below into a spreadsheet.
tableExpected cash inflowsYearPessimistic,Most likely,Optimistic$$$
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