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You are helping a manufacturing firm decide whether it should invest in a new plant. The initial investment is expected to be Rs. 50 crores,
You are helping a manufacturing firm decide whether it should invest in a new plant. The initial investment is expected to be Rs. 50 crores, and the plant is expected to generate after-tax cash flows of Rs. 5 crores for the next 20 years. An additional incremental investment of Rs. 20 crores will be needed to upgrade the plant in 10 years. If the discount rate is 10%, estimate the net present value of the project.
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