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Your company is considering investing $50 million to build a new factory. The new factory is expected to earn after tax profits of $12 million/year
- Your company is considering investing $50 million to build a new factory. The new factory is expected to earn after tax profits of $12 million/year for Years 1 and 2 and $13 million/year for Years 3, 4 and 5. If your companys weighted average cost of capital is 6.5%/year, what is the net present value of the new factory? (First draw a timeline.)
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Applied International Finance I Managing Foreign Exchange Risk
Authors: Thomas O'Brien
2nd Edition
1947441280,1947441299
