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Business, 25.03.2021 22:20 jines7382

. Piedmont Dairy Products, Inc. has the opportunity to purchase a processing plant from a bankrupt competitor for $4,500,000. Piedmont estimates that the plant could generate $2,430,000 of cash flow per year for the next 3 years. At the end of the third year, the plant would require a costly overhaul, so Piedmont would shut it down, and they estimate that the proceeds of selling off the equipment would just equal the cost of required environmental remediation. What rate of return does Piedmont estimate that this investment opportunity would provide

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