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Large Project Capital Investment Analysis You are analyzing the projected economics ofa large capital project totaling $66,000K that requires the licensing of technology and two
Large Project Capital Investment Analysis You are analyzing the projected economics ofa large capital project totaling $66,000K that requires the licensing of technology and two years to engineer and construct. The bases for this analysis are: -1)-CAPITAL INVESTMENTS $1,000K@t 0 (Up-front license cost) $25,000K@t- 1. 2 $40,000Kt= 2 PROJECTED AFTER-TAX CASH FLOW $10,000K per year for t - 3 throught-10 $8,500K per year for t- 11 throught= 17. 3) SALVAGE VALUE $1,500Kt=17. Using NPV methodology, will this investment meet the 12.0 percent hurdle rate required by your management for a relatively low risk project such as this? Show your work
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