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PLEASE ONLY ANSWER PART B Limitless Ltd. is planning to buy a new warehouse to store its production output. The investment would require 500,000 to
PLEASE ONLY ANSWER PART B
Limitless Ltd. is planning to buy a new warehouse to store its production output. The investment would require 500,000 to be paid upfront. Thanks to the new warehouse, the company expects to increase its profits by 120,000 annually for the next five years, and then 60,000 for the following five years. A. Calculate the Net Present Value (NPV) of this investment opportunity if the cost of eapital is 12%.[3 marks ] B. Should Limitless Ltd. go ahead with the purchase of the new warehouse? Explain your reasoning. [3 marks]Step by Step Solution
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