Question
A new factory will cost $20 million to build and will generate annual after-tax cash flows of $2.6 million forever. The firm's cost of capital
A new factory will cost $20 million to build and will generate annual after-tax cash flows of $2.6 million forever. The firm's cost of capital is 8%.
What is the project's EVA per year (in $ million)?
What is the project's EVA over its entire life (in $ million)?
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Cost Benefit Analysis
Authors: Harry F. Campbell, Richard P.C. Brown
3rd Edition
1032320753, 9781032320755
