Question: 4. Bob's, the same firm, is considering expanding by building a new superstore. The superstore will require an initial investment of $12.3 million and is

 4. Bob's, the same firm, is considering expanding by building a

4. Bob's, the same firm, is considering expanding by building a new superstore. The superstore will require an initial investment of $12.3 million and is expected to produce cash inflows of $1.3 million annually over its 10-year life. The risks associated with the superstore are comparable to the risks of the firm's current operations. The initial investment will be depreciated on a straight-line basis over the life of the project. At the end of the 10 years, the firm expects to sell the superstore for $6.7 million. Find both NPV and Pl. Based on these two methods, should the firm accept or reject the superstore project, explain

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