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TedulE company plans to open a new distribution center to deliver its products. The costs are given as follows: Initial costs of $30 million with
TedulE company plans to open a new distribution center to deliver its products. The costs are given as follows: Initial costs of $30 million with an expansion costing $10 million 10 years from now. Annual operating cost is $300,000 per year. Net revenue expectation is as follows: $280,000 the first year increasing by 3% per year for 9 additional years and then staying constant until year 20; $400,000 in year 21 and through the following years over an indefinite period. Find the PW for this project at MARR=8%
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