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Solve all parts of problem as detailed as possible please. Furthermore, Starbucks is looking to invest in a new warehouse distribution center in the Midwest
Solve all parts of problem as detailed as possible please.
Furthermore, Starbucks is looking to invest in a new warehouse distribution center in the Midwest and needs you to determine if they should invest in the new facility using capital budgeting techniques. You will need to include an analysis of your decision in your recommendations section of your paper. The initial cost of the investment is $15,000,000. The anticipated cash flows from the investment is estimated to be $3,500,000 for years 13,$2,300,500 for years 47, and $4,100,800 for years 810 with the expectation that the initial cost of the investment should be recovered in 5 years. The cost of capital has been determined to be 12 percent. Calculate the Payback, NPV, IRR and PI Step by Step Solution
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