Question
For the next four questions, consider the following setting: A project is expected to take 2 years to complete, with the first year costing $60,000
For the next four questions, consider the following setting:\ A project is expected to take 2 years to complete, with the\ first year costing
$60,000
and the second year costing\
$80,000
. Assume that these costs are incurred at the\ beginning of the respective years. Once completed (at the\ end of 2 nd year), the project is expected to generate a\ revenue stream of
$50,000
per year for the next 5 years\ (i.e., from year 3 thru year 7 inclusive). Assume that these\ revenues are realized at the end of the respective years.\ Question 6\ If the discount rate of
10%
is used, what is the net present\ value of the project? Round it to nearest integer, for\ instance, if the NPV is 2312.34, then write down 2312.
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