Question
It costs $25,000 to survey land development for feasibility purposes. If it is feasible, the project will cost $150,000 and the expected cash flows are:
It costs $25,000 to survey land development for feasibility purposes. If it is feasible, the project will cost $150,000 and the expected cash flows are:
Year 1: $60,000
Year 2: $0
Year 3: $100,000
Year 4: $0
Year 5: $60,000
There is also a $10,000 salvage value in year 5. The discount rate is 18%. Calculate the NPV.
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Options Futures And Other Derivatives
Authors: John C. Hull
9th Edition
0133456315, 9780133456318
