You are helping a manufacturing firm decide whether it should invest in a new plant. The initial investment is expected

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answerhappygod
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You are helping a manufacturing firm decide whether it should invest in a new plant. The initial investment is expected

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You are helping a manufacturing firm decide whether it should
invest in a new plant. The initial investment is expected to be Rs.
50 crores, and the plant is expected to generate after-tax cash
flows of Rs. 5 crores for the next 20 years. An additional
incremental investment of Rs. 20 crores will be needed to upgrade
the plant in 10 years. If the discount rate is 10%, estimate the
net present value of the project.
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