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You manage a software company that requires internet bandwidth to produce output. Currently your company is using 8 2 % of its capacity, but is
You manage a software company that requires internet bandwidth to produce output. Currently your company is using of its capacity, but is considering an expansion to utilize the additional bandwidth. Doing so will require $ in additional expenditures per year forever, and generate $ additional profits each year forever. The expansion will require a one time cost of $ What is the NPV of undertaking this expansion project? Assume a cost of capital of
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