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A wind turbine will cost $ 2 million to build and install. The PVCCATS works out to 2 5 % of the investment. The turbine

A wind turbine will cost $2 million to build and install. The PVCCATS works out to 25% of the investment. The turbine will operate for 20 years and produce sales of $300,000 at the end of each year. The operating margin (EBIT margin) is 80% and the tax rate is 25%. There are no changes to net working capital and no salvage. The discount rate is 8%.What is the present value of the operating cash flow annuity? (closest answer) $1.6 million $1.8 million $2.0 million 2.2million

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