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Consider the following information given below: Production and transport costs are variable costs while other costs are fixed. a . Calculate the NPV of the
Consider the following information given below:
Production and transport costs are variable costs while other costs are fixed.
a Calculate the NPV of the proposed polyzone project, if the spread in year holds at $ per pound and what's the right
management decision?
b Calculate the NPV of the proposed polyzone project, if the US chemical company can start up polyzone production at million
pounds in year rather than year and what's the right management decision?
c Calculate the NPV of the proposed polyzone project, if the US company makes a technological advance that reduces its annual
production costs to $ million. Competitors' production costs do not change and what's the right management decision?
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