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Finally, you have a fifth project that will cost 1400 to invest in today, will generate a cash inflow of 158 in year one, which
Finally, you have a fifth project that will cost 1400 to invest in today, will generate a cash inflow of 158 in year one, which will grow at a constant rate of 2% for 24 additional years (for a total of 25 cash inflows), and will have a shutdown cost of 1000 at the end of year 25. If the projects discount rate is 10%, what is the NPV and should you accept the project based on the NPV?
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