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The Webster Corp. is planning construction of a new shipping depot for its single manufacturing plant. The initial cost of the investment is $1...

The Webster Corp. is planning construction of a new shipping depot for its single manufacturing plant. The initial cost of the investment is $1 million. Efficienccies from the new depot are expected to reduce costs by $100,000 forever. The corporation has a total value of $60 million and has outstanding debt of $40 million. What is the NPV of the project if the firm has an after tax cost of debt of 6% and a cost equity of 9%?

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CH220310_5280_FIN.doc

The Webster Corp. is planning construction of a new shipping depot for its single
manufacturing plant. The initial cost of the investment is $1 million. Efficienccies from
the new depot are...

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