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Marcal Corp is considering the purchase of an electronics company, which would require an initial investment of $500 million. Marcal estimates of the electronics company
Marcal Corp is considering the purchase of an electronics company, which would require an initial investment of $500 million. Marcal estimates of the electronics company would provide net cash flows of $78 million at the end of each of the next 20 years. The cost of capital for the electronics company is 15%. a. Calculate NPV. Should Marcal purchase the electronics company? Why
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