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Hint: This is your initial cost right now A - What is the initial cash outlay associated with the expansion? B - What is the

Hint: This is your initial cost right now
A - What is the initial cash outlay associated with the expansion?
B - What is the net present value of of the expansion? Should Universal expand?
Hint: Use an IF statement here
C - If Universal's required rate of return increased to 20% what would the NPV be? Should Universal
expand if their required return increases to 20%?
D - What is the internal rate of return of the expansion?
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