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Tesla Inc. is planning to expand its production capacity by investing in a new manufacturing plant. The initial investment for the plant is $50 million.
- Tesla Inc. is planning to expand its production capacity by investing in a new manufacturing plant. The initial investment for the plant is $50 million. Over the next ten years, the plant is expected to generate annual cash flows of $15 million. Calculate the net present value (NPV) of the investment at a discount rate of 10%. Also, discuss the implications of the NPV results on Tesla's investment decision-making process, considering factors such as risk tolerance and strategic objectives.
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