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I am a business magnate and I would like to build a new factory to produce my widgets. At the end of the first year,
I am a business magnate and I would like to build a new factory to produce my widgets.
At the end of the first year, I spend $ on consultants who tell me how to go about my business. At the end of the second year, I spend $ million to build my factory. At the end of the third year, I start to ramp up production so I make $ in profit. At the end of the fourth, fifth, and sixth years, I make $ million each year. In the seventh year, I sell my factory for $ and I exit the project.
What is my NPV on this project, assuming an discount rate?
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