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As a seperate project (P) the firm is considering sponsoring a pacilion at the upcoming worlds fair. The pavilion would cost $800,000 and espected to
As a seperate project (P) the firm is considering sponsoring a pacilion at the upcoming worlds fair. The pavilion would cost $800,000 and espected to result in 5 million of incremental cash inflows durings its 1 year opersation. However, it would then thakt anotheer year, and 5 million of costs to demolish it and return it to purchased condition. Thus project ps CF would look like this
0 1 2
-0.8 5.0 -5
b. Draw project Ps NPV profile? ( I need a formula for this)
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