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a Your company is investigating the option to build a new plant. The total cost to build the plant will be $3,000,000. $1.500,000 must be

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a Your company is investigating the option to build a new plant. The total cost to build the plant will be $3,000,000. $1.500,000 must be paid to the engineering construction from today and the remaining $1,500,000 must be paid to the engineering construction form at the end of the 24 month build process. The plant will be ready to start operations at the end of the 24 month build proces and can operate for 5 years. Each year the plant operates, your company must take charges of $500,00 for raw materials and labor costs at the beginning of that year. At the end of each year the plant operates ams your company can take a credit for $1.500,000 in sales for the product made and sold that your Assume your company requires an effective rate of retum on its investments of 15% jie you can use a yearly interest rate of 15% in your financial analysis where needed. What is the correct value for C1 that should be entered into the cash flow table below to represent this project? PO Year Cash Flow Discount Factor Present Value DO CO P1 0 D1 C1 P2 1 D2 C2 P3 2 D3 p4 C3 3 D4 04 PS P6 4 D5 C5 Un D6 5 P7 C6 D7 6 P8 07 D8 7 8 OD None of these answers is correct

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