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Suppose General Electric Company is contemplating investing in a new manufacturing facility. The initial investment is $50,000,000, and the project promises cash flows of $10,000,000
Suppose General Electric Company is contemplating investing in a new manufacturing facility. The initial investment is $50,000,000, and the project promises cash flows of $10,000,000 annually for 10 years. Perform a sensitivity analysis by adjusting the discount rate from 6% to 10%. Present the net present value (NPV) for each discount rate scenario, and provide a comprehensive analysis of the project's viability, considering various risk factors and potential market conditions.
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