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You predict that that the revenues from the new facility will be $10M or $6M next year and remain constant for the next 8 years,

You predict that that the revenues from the new facility will be $10M or $6M next year and remain constant for the next 8 years, depending on whether the trade war continues or worsens. Your lobbyists and economic forecasts suggest that both possibilities are equally likely. Assume that the discount rate for the new facility is 8 percent per year. a) What is the present value of the expected revenues of opening the facility

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