Question
A project requires an initial investment of $320,000 depreciated straight-line to $0 in 24 years. The investment is expected to generate annual sales of $90,000
A project requires an initial investment of $320,000 depreciated straight-line to $0 in 24 years. The investment is expected to generate annual sales of $90,000 with annual costs of $45,000 for 30 years. Assume a tax rate of 30% and a discount rate of 20%. What is the NPV of the project?
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Basic Finance An Introduction to Financial Institutions Investments and Management
Authors: Herbert B. Mayo
10th edition
1111820635, 978-1111820633
