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Break-even cash inflows and risk. Boardman Gases and Chervicass is a supplior of highly purfiled gases to serriconduclor manufacturers. A large chip producer has anked

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Break-even cash inflows and risk. Boardman Gases and Chervicass is a supplior of highly purfiled gases to serriconduclor manufacturers. A large chip producer has anked Boardman to buld a subsequent 10 years. Boardman is conaidering one of two plant designs. The fist is Boardman's "standard" plant which will cost $38.7 milion to build. The second is for a "ousion" plant which wal its client will order $12.6 milion of product per year if the standard plant is constructed, but ir the custom design is put in place, floardman expects to sell $17.8m ilion worth of product armualy to its a. Find the NPV for each project. Are the projects accoptable? b. Find the break-oven cash inflow for each project. c. The firm has estimated the probabillas of achieving various ranges of cash inflows for the two projects, as shown in the table What is the grobabely that each project wil achieve the break-even cash inflow found in part (b)? d. Which projoct is more risky? Which pecject has the potentioliy higher NPV? Discuss the risk-return trade-ofls of the two projects d. If the frm wishod to minimgze losses (that is, NPV

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