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ABC company wants to invest $10 million up front in a project that will generate cash flows of $3 million per year for 5 years
ABC company wants to invest $10 million up front in a project that will generate cash flows of $3 million per year for 5 years starting in a year. In year 6 the company will incur a shut-down cost of $2 million. If the cost of capital is 11%, then what is the NPV for this project? A) -$99,212 B) $12,304 C) $18,409 D) $82,416 E) $111,389
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