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Bullets Format: Amazon Inc. is analyzing its investment in new fulfillment centers. The company is considering three options: Option A: Invest $50 million in
- Bullets Format: Amazon Inc. is analyzing its investment in new fulfillment centers. The company is considering three options:
- Option A: Invest $50 million in building a new fulfillment center.
- Option B: Lease an existing fulfillment center for an annual fee of $10 million for ten years.
- Option C: Expand an existing fulfillment center with a capital expenditure of $30 million.
Calculate the net present value (NPV) for each option using a discount rate of 8%.
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
25th edition
978-1285069609, 1285069609, 978-1133607601
