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BS Corp is considering a large plant expansion/modernization which will cost $115 million initially and another $75 million at the end of year 3. This
BS Corp is considering a large plant expansion/modernization which will cost $115 million initially and another $75 million at the end of year 3. This project is expected to produce incremental after-tax profits of $40 million, $35 million, $30 million, $45 million, $50 million and $30 million to be received at the end of years 1, 2, 3, 4, 5 and 6 respectively. If the WACC is 6%,
what is the projects NPV?
What is the MIRR for BS Corps project ? (answer should be carried to 1 decimal place.)
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