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Exercise 7.5: (10 pts) Recommend whether your company should invest in the following process: The internal hurdle rate is 17%, before taxes, over an operating

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Exercise 7.5: (10 pts) Recommend whether your company should invest in the following process: The internal hurdle rate is 17%, before taxes, over an operating lifetime of 15 years. The fixed capital investment is made in two installments: $7MM at time zero and S4MM at the end of year 1. At the end of year 1, $1 million in working capital is required. For the remainder of the project lifetime, $2.5MM in income is realized

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