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    Present value of the expected after-tax cash profits

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    Determine whether PowerCo should construct a new generator to meet an expected rise in demand for power. "PowerCo: Your Analysis and Report."

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    Please see the attached excel file

    1. What is the present value of the expected costs? Show all calculations.
    Please see the attached excel file

    2. What is the present value of the expected after-tax cash profits? Show all calculations.
    Please see the attached excel file

    3. What is the expected net present value (the difference between the PVs of the inflows and outflows)? Show the calculations. What does this number represent? Be detailed in your responses.
    Please see the attached excel file

    The net present value (NPV) method offsets the present value of an investment's cash inflows against the present value of the cash outflows. ...

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    Response helps in calculating present value of the expected after-tax cash profits

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