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A company can invest in a project that will raise its revenues by $7,000 per year after taxes. The project costs $30,000 up front and
A company can invest in a project that will raise its revenues by $7,000 per year after taxes. The project costs $30,000 up front and has an anticipated life of 6 years. Q1. If the company can earn 12% after taxes on capital invested in other projects, what is the NPV of this project? Your answer should be a whole number. Use the annuity factor. Q2. What does the NPV you calculated tell you about whether this project is a good investment
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