Question
Note: Must provide detailed solution please, not just the answer without explanation, please! The investment cost of the project to launch a new production line
Note: Must provide detailed solution please, not just the answer without explanation, please!
The investment cost of the project to launch a new production line is 200 million rubles; the revenue from the sale of new products manufactured using this line is 80 million rubles a year (before taxes and without depreciation of the equipment). The equipment is fully amortized over five years, after which the project is closed. The income tax rate is 30%. Calculate the NPV and payback period of the project (simple and discounted) if the discount rate is 12%.
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