Aberdeen Outboard Motors is contemplating building a new plant. The company anticipates that the plant will require
Question:
Aberdeen Outboard Motors is contemplating building a new plant. The company anticipates that the plant will require an initial investment of $2.11 million in net working capital today. The plant will last 11 years, at which point the full investment in net working capital will be recovered. Given an annual discount rate of 6.4%, what is the net present value of this working capital investment?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Question Posted: