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Question 24 4 pts TeleStark is considering building a new manufacturing plant. This plant will cost $8 million to build. The new plant will produce
Question 24 4 pts TeleStark is considering building a new manufacturing plant. This plant will cost $8 million to build. The new plant will produce cash inflows of $1 million per year for the next 14 years. TeleStark already owns the land on which it intends to build the new plant. TeleStark spent $0.8 million to excavate the land and prepare it for development. Rather than building the plant. TeleStark could sell the land for $2.5 million. If TeleStark's required return is 6.2%, should it build the plant? How much value does this project create (or destroy) in today's (time 0) dollars? O Yes, creates $0.38 mil O Yes, creates $0.17 mil O No. destroys $1.32 mil No, destroys $2.12 mill
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