Build a new office building production facility

Reference no: EM13695905

Tasty manufacturer is planning to build a new office building production facility. The facility can be built in at reduced capacity now for $40 million and can be expanded 15 years later for an additional $35 million. An alternative is to construct the facility now for $ 50 million. Both alternatives would provide the needed capacity for the 25-year analysis period. At 6% interest. Which alternative should we use?

Reference no: EM13695905

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