Question
A project needs an investment of S30k at time zero and $15k at the end of year 1. It is expected to generate a net
A project needs an investment of S30k at time zero and $15k at the end of year 1. It is expected to generate a net income of $15k for year 1 to 8. At the end of gth year, it is expected to incur an environmental cost of $30k and a salvage value of S20k.
Please calculate NPV at a minimum DCFROR of 20%. Then evaluate the probability for the project to be economically satisfactory and the most likely NPV to be achieved.
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Fundamentals of corporate finance
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