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It's the same problem. Answer just question b. Chapter 14 1. Chapter 14, Question 13 Capital Budgeting Example Brower, Inc., just constructed a manufacturing plant

It's the same problem. Answer just question b. image text in transcribed
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Chapter 14 1. Chapter 14, Question 13 Capital Budgeting Example Brower, Inc., just constructed a manufacturing plant in Ghana. The construction cost 9 billion Ghanaian cedi. Brower intends to leave the plant open for 3 years. During the 3 years of operation, cedi cash flows are expected to be 3 billion cedi, 3 billion cedi, and 2 billion cedi, respectively. operating cash flows will begin 1 year from today and are remitted back to the parent at the end of each year. At the end of third year, Brower expects to sell the plant for 5 billion cedi. Brower has a required rate of return of 17 percent. It currently takes 8,700 cedi to buy l U.S. dollar, and the cedi is expected to depreciate by 5% per year. a. Determine the NPV for this project. Should Brower build the plant

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