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Showing all work, calculate the NPV of the following project: The company you are working for wants to know if the Highway 4 0 1
Showing all work, calculate the NPV of the following project:
The company you are working for wants to know if the Highway rest station electric vehicle charger project they are considering bidding is likely to be profitable, or not. The project documents call for revenue sharing among the construction trades. You calculate the NPV with the following inputs:
The cost for materials and labor, $k is to be invested immediately in year zero
You spend $k in the following year on electrical room upgrades.
Anticipated revenues are to be $k in year $k in year $k in year $k in year and $k in year
The annual inflation rate is
The company requires a rate of return of
Select the right answer
AThe company should pursue the project because a net profit of $k is achieved
BThe company should pursue the project because the revenue is steadily going up If the trend continued, they would get revenue of $k in year
CThe company should pursue the project even though the net present value is only $k
DThe company should pursue the project even though the net present value is $k
ENone of the above
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