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the TX corporation is planning on building a new factory. The land will cost $800,000 payable immediately. The construction of the factory will cost 5,010,000

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the TX corporation is planning on building a new factory. The land will cost $800,000 payable immediately. The construction of the factory will cost 5,010,000 construction will take 2 years with construction cost payable in equal installments at the start of each year. The factory will operate for 20 years after completion. At the end of its 20 year life span it will be sold for 3,044,000. The discount rate for this investment is 10%. The factory will have operating profits $690,000 you may assume that operating profits flow at the end of each year of operation. You may ignore taxes and Cost of Capital allowance (CCA) for this problem. 1. What is the net present value for the factory?) must be shown using EXCEL for answer 2. What is the internal rate of return for the factory? (must be shown in EXCEL for answer 3. Should TZ corporation build the factory yes or no

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