Question
Duncombe Village Golf Course is considering the purchase of new equipment that will cost $1,250,000 if purchased today and will generate the following cash disbursements
Duncombe Village Golf Course is considering the purchase of new equipment that will cost $1,250,000 if purchased today and will generate the following cash disbursements and receipts. Should Duncombe pursue the investment if the cost of capital is 8 percent? Why?
| Year | Cash receipts | Cash disbursements | Net Cash Flow |
| 1 | 950,000 | 500,000 | 450,000 |
| 2 | 925,000 | 475,000 | 450,000 |
| 3 | 800,000 | 450,000 | 350,000 |
| 4 | 675,000 | 430,000 | 245,000 |
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Project Financing Asset-Based Financial Engineering
Authors: John D Finnerty
3rd Edition
1118421841, 9781118421840
