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Sudbury Builders is considering a project that will require an immediate cost outlay of $70 000, and $40 000 cash outlays for the next two
Sudbury Builders is considering a project that will require an immediate cost outlay of $70 000, and $40 000 cash outlays for the next two years. At the end of the eight year project, the salvage value will be $20 000. The project will yield returns of $50 000 in years 3-5 and $70 000 in years 6-8. The required rate of return is 14%. Calculate the NPV of the project. Should they accept/reject the project? Draw a Timeline
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