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Calculate the NPV of an investment in a new security system for your automated warehouse that will allow you to increase the rent you charge
Calculate the NPV of an investment in a new security system for your automated warehouse that will allow you to increase the rent you charge your tenants. Would you make this investment given your calculation? Why or why not in three sentences or less. 1. Capital investment: $600,000 2. Cash Flow End of Year (EOY) 1: $125,000 3. CF EOY2: $125,000 4. CF EOY3: $150,000 5. CF EOY4: $175,000 6. CF EOY5: $175,000 7. WACC: 8.2%
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