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A mining company is considering spending $50,000 today for a new drill that will last 5 years and be worthless after. This drill runs more
A mining company is considering spending $50,000 today for a new drill that will last 5 years and be worthless after. This drill runs more efficiently than the old one and will result in an incremental $10,000 in free cash flow each year, starting in one year, for five years. Given the information in this question, what, if anything, can you say about the NPV of this project?
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