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Your firm is considering building a 590million plant to manufacture HDTV circuitry. You expect operating profits (EBITDA) of 140 million per year for the next

Your firm is considering building a 590million plant to manufacture HDTV circuitry. You expect operating profits (EBITDA) of 140 million per year for the next ten years. The plant will be depreciated on a straight-line basis over ten years (assuming no salvage value for tax purposes). After ten years, the plant will have a salvage value of 293million (which, since it will be fully depreciated, is then taxable). The project requires 50 million in working capital at the start, which will be recovered in year ten when the project shuts down. The corporate tax rate is35%sh flows occur at the end of the year. a. If the risk-free rate is 4.4%, the expected return of the market is 11.6%, and the asset beta for the consumer electronics industry is 1.66 , what is the NPV of the project?

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