Determine the npv for the project

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Question: Brower, Inc., just constructed a manufacturing plant in Ghana. The construction cost 9 billion Ghanaian cedi. Brower intends to leave the plant open for 3 years. During the 3 years of operation, cedi cash flows are expected to be 3 billion cedi, 3 billion cedi, and 2 billion cedi, respectively. Operating cash flows will begin 1 year from today and arc remitted back to the parent at the end of each year. At the end of third year. Brower expects to sell the plant for 5 billion cedi. Brower has a required rate of return of 17 percent. It currently takes 8, 700 cedi to buy 1 U.S. dollar, and the cedi is expected to depreciate by 5% per year.

a. Determine the NPV for this project. Should Brower build the plant?

Reference no: EM131949758

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