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On 01/01/2021(time zero), a large energy company/project reported incomes as shown in the table below.The salvage value would be 70,307 million dollars at the end
On 01/01/2021(time zero), a large energy company/project reported incomes as shown in the table below.The salvage value would be 70,307 million dollars at the end of 5 year. What is a reasonable breakeven acquisition cost at time zero if other investment alternatives yield a return of 11% per year? What is the value of all incomes, including salvage, at the end of 5th year?
0 Year Incomes, $ millions 1 -4,454 2 1,840 3 4,624 4 8,115 5 -112
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