Question
can I get help *********************************************************** This big company is looking at expanding their building and adding some cablesa nd automation. The system is expected to
can I get help
***********************************************************
This big company is looking at expanding their building and adding some cablesa nd automation. The system is expected to cost $24,000,000. The company doesn't know what the projected sales will be so they develop a 3 point estimate for annual benefit per the table below. If the company expects this project savings to start 2 years after the investment, total project life of 10 years, and company MARR of 12%, what is the expected NPV of this project?
Projection Probability Annual Benefit Growth Year over year Low 25% 4,000,000 4% Medium 50% 5,000,000 4% High 25% 5,500,000 4.50%
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