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TrinTec, Inc. a chip manufacturing company is planning to establish a new factory overseas. The project requires an initial investment of $15,000,000. Management intends to

TrinTec, Inc. a chip manufacturing company is planning to establish a new factory overseas. The project requires an initial investment of $15,000,000. Management intends to own the factory for 6 years then sell it to a local tech company. Management projects the first years cash flow of $4,000,000 will grow at approximately 3% per year over the holding period. Management also estimated an expected sales price of $5,000,000 at the end of the holding period. If TriniTecs required rate of return is 20%, how would you advise the Board to proceed?

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