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UG Waters, expects to sell 2 million bottles of drinking water each year in perpetuity. This year each bottle will sell for GHS 1.25 in
UG Waters, expects to sell 2 million bottles of drinking water each year in perpetuity. This year each bottle will sell for GHS 1.25 in real terms and will cost
GHS 0.80 in real terms. Sales income and costs occur at year-end. Revenues will rise at a real rate of 6% annually, while real costs will rise at a real rate of 5% annually. The real discount rate is 10%. The corporate tax rate is 34%. Do you think UG Waters is a good project to do? Show all analysis. What is UG Waters worth today?
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