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1) AERO spent and expensed $60,000 on research related to the project last year. Do you include the research expense as part of the outflows
1) AERO spent and expensed $60,000 on research related to the project last year. Do you include the research expense as part of the outflows when calculating NPV, IRR and Payback Period? Yes or No
2) The company plans to use the building that it owns to house the project. The building could be rented out for 1/2 million dollars per year after subtracting taxes and real estate commissions. Is the 1/2 million dollars a cost to the firm?
3) For Aero, does the use of the building for the project raise NPV or lower NPV. Yes/No & why?
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