Question: Project NPV ( S 6 . 3 ) A widget manufacturer currently 2 a lid. The plant manager believes that it would be cheaper $

Project NPV (S6.3) A widget manufacturer currently 2 a lid. The plant manager believes that it would be cheaper $1.50 a lid. The necessary machinery would cost $150,000 and would last 10 years. Thater e operation would require additional working capital of $30,000 but argues that this sum can be ignored since it is recoverable at the end of the 10 years. If the company pays tax at a rate of 21% and the opportunity cost of capital is 15%, would you support the plant manager's proposal? State clearly any additional assumptions that you need to make.
 Project NPV (S6.3) A widget manufacturer currently 2 a lid. The

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