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The Minnesota Metal Forming Company has just invested $ 5 0 0 , 0 0 0 of fixed capital in a manufacturing process that is
The Minnesota Metal Forming Company has just invested $ of fixed capital in a manufacturing process that is estimated to generate an aftertax annual cash flow of $ in each of the next five years. At the end of year no further market for the product and no salvage value for the manufacturing process is expected. If a manufacturing problem delays the startup of the plant for one year leaving only four years of process life what additional aftertax cash flow will be needed to maintain the same internal rate of return as would be experienced if no delay occurred?
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