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Question 9 ( 25 marks) Mary Jane Beauty can invest $5 million in a new plant for producing invisible makeup. The plant has an expected

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Question 9 ( 25 marks) Mary Jane Beauty can invest $5 million in a new plant for producing invisible makeup. The plant has an expected life of 5 years, and expected sales are 6 million jars of makeup a year. Fixed costs are $2 million a year, and variable costs are $1 per jar. The product will be priced at $2 a jar. The plant will be depreciated straight line over 5 years to a salvage value of zero. The opportunity cost of capital is 10% and the tax rate is 40%. d) At what price per jar would project NPV equal zero

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