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Business, 19.10.2019 00:00 blondieb1722

You are considering constructing a new plant in a remote wilderness area to process the ore from a planned mining operation. you anticipate that the plant will take a year to build and cost $ 105 million upfront. once built, it will generate cash flows of $ 18 million at the end of every year over the life of the plant. the plant will be useless 20 years after its completion once the mine runs out of ore. at that point you expect to pay $ 255 million to shut the plant down and restore the area to its pristime state. using a cost of capital of 12 %: , what is the npv of the project? is using the irr rule reliable for the project? what are the irr's of the project

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