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A firm is considering investing in a project that will last 10 years and will cost $25,670,000 upfront. The firm expects to earn $2,450,000 each
A firm is considering investing in a project that will last 10 years and will cost $25,670,000 upfront. The firm expects to earn $2,450,000 each year for the first 5 years of the project. They expect to earn $3,900,000 each year for the next 4 years of the project. Finally, the firm expects to earn $1,800,000 for the final year of the project. If the required return on the project is 4.66%, then the net present value is
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-$2,720,639.57
$3,900,114.49
$3,980,000
-$17,520,000
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