Homework Answers
1.
Yes, It will provide additional saving of $ = $20 *10 - $ 150 million
= 200- 150
= $ 50 Million
2.
Payback period = 150 / 20
= 7.5 Years
3.
Market rate if interest should be used to evaluate the investement oppurtunity. That makes it comparable.
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Need help with this question and its parts. I do not own
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copyrights of this question. Thanks
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