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answer all parts please Capablanca Corporation is considering a project that has a life of 20 years. An initial investment of $1,200,000 will be required.
answer all parts please
Capablanca Corporation is considering a project that has a life of 20 years. An initial investment of $1,200,000 will be required. A major overhaul of the proposed factory, costing $230,000 will be needed half way through the project (at t=10). The revenue from the first year is expected to be $108,100 for the first year and $143,000 each year thereafter. Assume revenues occur at the end of each year. $85,000 will need to be spent cleaning the site at the end of the project. Using the NPV method, determine if the project should be undertaken if the required rate of return is 10.7%
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