Question
A company is developing a special vehicle for Arctic exploration. The development requires an initial investment of $65,000 and investments of $50,000 and $43,000 for
A company is developing a special vehicle for Arctic exploration. The development requires an initial investment of $65,000 and investments of $50,000 and $43,000 for the next two years, respectively. Net returns beginning in Year 4 are expected to be $24,000 per year for 14 years. If the company requires a rate of return of 9%, compute the net present value of the project and determine whether the company should undertake the project.
A.The net present value of the project is $......
(Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.)
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