Question: Please answer problem 8: 7) A proposed production line has an expected life of 10 years. The initial investment is $80 million. The minimum rate

Please answer problem 8:

7) A proposed production line has an expected life of 10 years. The initial investment is $80 million. The minimum rate of return on investment has been established at 14% by the Board of Directors. What is the minimum acceptable equal cash inflow each year from the line?

8) The production line in Problem 7) now expects a negative cash flow of $3 million in year 1 and zero cash inflow in Year 2. If the minimum rate of return remains 14%, what would now be the minimum acceptable equal cash flows for the remaining 8 years?

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