Question
$100 million up-front investment.The plant will generate after-tax profits of $50 million per year for 3 years, and will require a $40 million clean-up cost
$100 million up-front investment.The plant will generate after-tax profits of $50 million per year for 3 years, and will require a $40 million clean-up cost at the end of the fourth year.Calculate the Net Present Value (NPV) of the investment project assuming a 10% (annual) discount rate.
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Principles of Macroeconomics
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
12th edition
134078802, 978-0134078809
