Question: Project NPV ( S 6 . 3 ) A widget manufacturer currently 2 a lid. The plant manager believes that it would be cheaper $
Project NPV S A widget manufacturer currently a lid. The plant manager believes that it would be cheaper $ a lid. The necessary machinery would cost $ and would last years. Thater e operation would require additional working capital of $ but argues that this sum can be ignored since it is recoverable at the end of the years. If the company pays tax at a rate of and the opportunity cost of capital is would you support the plant manager's proposal? State clearly any additional assumptions that you need to make.
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