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A business spent $4 million to build a new facility after operating and maintenance costs of $400,000 annually, and annual revenues of $500,000. after 6
A business spent $4 million to build a new facility after operating and maintenance costs of $400,000 annually, and annual revenues of $500,000. after 6 years, a larger corporation buys out the facility for $8 million.m
A) draw a cash flow diagram
B) calculate present value for facility.( i=8%) over 6 year lifecycle.
D) what is the annual equivalent of the present value of the facility competed in part B (i=8%)
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