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M19 -Gojo Industries plans to expand its current manufacturing facility in Akron Ohio in response to demand for its products because of the COVID-19 virus.
M19 -Gojo Industries plans to expand its current manufacturing facility in Akron Ohio in response to demand for its products because of the COVID-19 virus. The expansion project will require an initial cash outlay of $72,000,000 and is expected to generate cash inflows from operations of $35,000,000 every year for the next five (5) years at which time the project will be closed and the facility and equipment sold for an expected $25,000,000. Gojo uses a required rate of return of 12.75% for this project. Calculate the discounted value of all expected cash flows from operations for this project O 137,577,832 O 102,350,225 078,325,310 O 65,577,832
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