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Should a company start a multi - year investment project? Here's what's known: The return required for this project is 9 . 4 % per
Should a company start a multiyear investment project? Here's what's known:
The return required for this project is per year. $ would need to be invested right away to buy all necessary production equipment. This project is expected to end at the end of Year and at that time all production equipment will be sold and generate a cash inflow of $ in aftertax salvage value. To meet any unforeseen equipment maintenance and repair expenses, $ of cash would be set aside at the start of the project. It will then be increased by $ each year. The cash balance will then be recovered at the end of the project's life. $ in aftertax profits ie operating cash flow is estimated for each future year of the project.
The project's Net Present Value equals $
Increase decimal places for any intermediate calculations, from the default to or higher. Only round your final answer to TWO decimal places: for example,
Do NOT use $ in your answer.
If your answer is negative, don't forget the MINUS sign!
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