Multiple Choice
Allen Technology Company is currently valued at $400 million. It is proposing a new plant with a net present value of $200 million. However, the new plant will reduce the value of one of its existing plants by $50 million. What is the value of the company if it invests in the new plant?
A) $600 million
B) $200 million
C) $550 million
D) $650 million
Correct Answer:
Verified
Correct Answer:
Verified
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