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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 what would the NPV be Should Universal
expand if their required return increases to
D What is the internal rate of return of the expansion?
RED is incorrect
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