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Emperor s Clothes Fashions can invest $ 5 . 1 2 million in a new plant for producing invisible makeup. The plant has an expected
Emperors Clothes Fashions can invest $ million in a new plant for producing invisible makeup. The plant has an expected life of five years, and expected sales are million jars of makeup a year. Fixed costs are $ million a year, and variable costs are $ per jar. The product will be priced at $ per jar. The plant will be depreciated straightline over five years to a salvage value of zero. The opportunity cost of capital is and the tax rate is
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