Question
Financial Information Related to an Investment Include in NPV? (Yes/No) If include, where/how? If not, why not? A Annual interest charges on the loan for
| Financial Information Related to an Investment | Include in NPV? (Yes/No) | If include, where/how? If not, why not? |
A | Annual interest charges on the loan for the project will be $7,000 a year. |
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B | Annual labor costs associated with the project will be $10,000. |
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C | The project will necessitate an increase in insurance costs from $10,000 to $15,000 a year. |
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D | Assets acquired for the project will be worth approximately $75,000 in 20 years. |
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E | Given the current estimate of rental costs on a per square foot basis for the companys existing building, space used for the project would be valued at $8,000 a year. The space is currently unused by the company. |
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F | Uncertainty about annual costs associated with the project. |
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