BrightLights Inc. is considering the construction of a new fabrication plant in Sonora Mexico.If they move forward
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BrightLights Inc. is considering the construction of a new fabrication plant in Sonora Mexico.If they move forward with the project, the entire cost to build and to establish the new facility will be $400 million in 2021.The plant will be operational in 2023 and will generate an incremental cash profit for Chiptec of $28.1 million per year for the next 20 years, after which time planners at the firm assume that the facility will become obsolete.If the discount rate for this project is 9.0%, would you suggest that the firm move forward with construction?
Related Book For
Valuation The Art and Science of Corporate Investment Decisions
ISBN: 978-0133479522
3rd edition
Authors: Sheridan Titman, John D. Martin
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