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Anderson Motors Inc. is contemplating building a new plant. The company anticipates that the plant will require an initial in

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Answer #1

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=2,000,000/1.06^10

=$1116789.55

NPV=Present value of inflows-Present value of outflows

=1116789.55-2,000,000

=($883210)(Approx)(Negative).

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