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American Rubber Company is planning to invest in a new assembly plant in Akron, Ohio....

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American Rubber Company is planning to invest in a new assembly plant in Akron, Ohio. The plant requires an initial cash outlay of $100,000,000 dollars. Cash flows from operations are expected to be $30,000,000 every year for the next eight (8) years at which time the plant will be disposed generating a terminal cash inflow of $20,000,000. If American Rubber Company's required rate of return for projects of similar risks is 18% 17 Calculate the project's Net Present Value 32,327,185 b 31,060,125 29,373,076 27,647,736 18 Calculate the project's Internal Rate of Return 27.25% 26.13% 25.04% 24.39% 19 Hooo oooo Calculate the project's Payback Period 6.5 Years 5.25 Years 3.33 Years 2.25 Years

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