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Northfield Casino is considering converting the Polsky Building at University of Akron into a state-of-the-art gaming parlor. This expansion project will require an initial outlay
Northfield Casino is considering converting the Polsky Building at University of Akron into a state-of-the-art gaming parlor. This expansion project will require an initial outlay of $75,000,000 with a project life of five years. Cash flows from operating the new parlor are expected to be $25,000,000 every year for the next five years. The parlor will be sold for $50,000,000 at the end of five years. The project's required rate of return, or discount rate is 18%. Based on this information: Calculate the project's Net Present Value - NPV 031,020,225 29,325,376 27,295,800 O 25,034,736 18,036,925
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