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help Problem 5-8 (Algo) 5 Expondo, Inc. is consider the possibility of bunding an additional factory that would produce a new addon to product line.
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Problem 5-8 (Algo) 5 Expondo, Inc. is consider the possibility of bunding an additional factory that would produce a new addon to product line. The company is currently considering two options. The first is a small facility that could build at a cost of $6 milioni demand for new products is low, the company expects to receive $10 non in discounted revenues present Value of future revenues with the small facility. On the other hand, demand is tight expects $13 milioni di counted revenues on the mattity The second cons to build a large factory at a cost of $10 million were demand to be low, the company would expect $11 milion in discounted revenues with the large plant demand is high the company states that the discounted revenues would be $5 min in her cace, the probability of demand being high s 0.60, and the probamy of it being low 040 Not constructing a new factory would run 10 additional revenue being generated because the current factores cannot produce these new DOCES ..Calculate the NPV for the following Leave no cells blank.be certain to enter "O' wherever required. Enter your answers in millions rounded to decimal place) 0 b. The best decision todos to buid the salony to build the warge city to do nothing Step by Step Solution
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