Question
Lincoln Coal is planning a new plant. The plant will cost 430,000 to build in year 0. It will earn 200,000 at the end of
Lincoln Coal is planning a new plant. The plant will cost 430,000 to build in year 0. It will earn 200,000 at the end of each year, from year 1 to year 7. When production stops, the plant will be closed with a total estimated closure cost of 170,000. Lincoln's cost of capital is estimated at 16%. a) What is the NPV of this project? b) What is the discounted payback period?
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Entrepreneurial Financial Management An Applied Approach
Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman
5th Edition
0367335417, 978-0367335410
