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The Maxwell Corporation is considering expanding operations of their manufacturing facility. The expansion cost $6 million and will increase annual cash inflow by $2.2 million

The Maxwell Corporation is considering expanding operations of their manufacturing facility. The expansion cost $6 million and will increase annual cash inflow by $2.2 million for 7 years and then will provide no additional increase in revenue. The management believes that a good return on investments is 10-20%. Required: 1. What if the cashflows are not correctly forecasted at $2.2 million how sensitive are they (show different values)?

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