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2. A project costs $200,000 per year for 5 years, starting immediately. You reckon that it will produce an cash inflow after operating costs of
2. A project costs $200,000 per year for 5 years, starting immediately. You reckon that it will produce an cash inflow after operating costs of $170,000 a year for 10 years, starting 3 years from now. The opportunity cost of capital is 17 percent. a. What is the present value of costs? b. What is the present value of the cash inflows? c. Based on these cost and cash inflow estimates, what is your recommendation
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