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Project Mean Green has an initial after-tax cost of $500,000. The project is expected to produce after-tax CFs of $100,000 at the end of each
Project Mean Green has an initial after-tax cost of $500,000. The project is expected to produce after-tax CFs of $100,000 at the end of each year for the next five years and has a WACC of 10%. Theres a 20% probability that the projects growth opportunities will have an NPV of $3 million at t=5, and a 80% probability that the NPV will be -1.2 million at t=5. Is it feasible for the company to expand the project after 5 years
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