Allen Technology Company is currently valued at $400 million. It is proposing a new plant with a net present value of $200 million. But the new plant will reduce the value of the existing plant by $50 million. What is the value of the company if it takes up the new plant?
A) $600 million.
B) $200 million.
C) $550 million.
D) None of the above.
Correct Answer:
Verified
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