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 If the project is initiated, it will require an expenditure on research and development of 4% of the total

amount that company x spent on research and development in the last financial year. Also, an investment in a new production facility, which is estimated to cost $24 million, will be necessary. The project is three years.

For a NPV analysis using free cash flows, in year 0 would the free cash flow be = (capex) + (expenditure after tax)?.

so would you have a capex and cash flow from operations in year 0?.

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Free cash flows = Cash flows from operation - Capex In year 0, for NPV analysis using... View the full answer

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