Variable Market Research Investment in Equipment Sales Price Variable cost Annual Production Fixed costs Project Life...

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Variable Market Research Investment in Equipment Sales Price Variable cost Annual Production Fixed costs Project Life Salvage Value Discount Rate Tax rate OCF growth rate Value Unit 1000000 NOK 3 000 000 NOK 1 200 NOK/hour 250 NOK/hour 1 200 000 NOK/year 3 600 Hours 5 Years 0 NOK 10 % 25 % 0 % a) Set up the project's cash flow and calculate the Net Present Value (NPV) by | assuming a discount rate at 10%. Should we make the investment? Variable Market Research Investment in Equipment Sales Price Variable cost Annual Production Fixed costs Project Life Salvage Value Discount Rate Tax rate OCF growth rate Value Unit 1000000 NOK 3 000 000 NOK 1 200 NOK/hour 250 NOK/hour 1 200 000 NOK/year 3 600 Hours 5 Years 0 NOK 10 % 25 % 0 % a) Set up the project's cash flow and calculate the Net Present Value (NPV) by | assuming a discount rate at 10%. Should we make the investment?