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A company operates sanitary landfills. Here are the cash flows anticipated by the company for a new landfill: The initial cost of the landfill is
A company operates sanitary landfills. Here are the cash flows anticipated by the company for a new landfill:
The initial cost of the landfill is $ This cowers the expense of digging the hole, fencing it and providing appropriate truck access.
The annual net cash inflows from the landfill are $ These represent the fees the company collects in return for giving trash collection companies the right to dump their trash in the landfill. THese cash flows are net of any costs incurred by the landfill company.
After five years the landfill will be full. The costs of closing the land fill, incurred at the end of year are $ This includes the costs of abiding by various ecological regulations and so on
What's different about the cash flow Patterns? What's the IRR of this company's investrnent?
Create a NPV profile.
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