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Currently the company imports Gasoline E5 from international supplier.To expand value chain, the company has considered invested in GasolineE5 factory.? On the other hand, the

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  • Currently the company imports Gasoline E5 from international supplier.To expand value chain, the company has considered invested in GasolineE5 factory.?
  • On the other hand, the company also plans to launch a new product line(SolventOgrasol) to diversify its revenue stream.?
  1. Based on your research and assumptions of relevant sectors,forecast the cash flows in the next 10 years for the 2 projectswhich NSH is considering;?
  2. Calculate the WACC of NSH and make an adjustment to this WACCthat takes into any additional risk NSH might confront from thisinvestment. Explain how you arrived at this WACC;?
  3. Calculate the payback period, IRR, and NPV for the 2 projects;?
  4. Select the investment that will create the most value for NSH.Explain why you select this project over the other and evaluate anypossible risks that NSH might face when investing in this project.?
  • ?

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