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The company you are working for wants to know if the Highway 401 rest station electric vehicle charger project they are considering bidding is likely
The company you are working for wants to know if the Highway 401 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, $130k, is to be invested immediately in year zero You spend $30k in the following year on electrical room upgrades. Anticipated revenues are to be $30k in year 0, $100k in year 1, $130k in year 2, $160k in year 3, and $190k in year 4. The annual inflation rate is 3%. The company requires a rate of return of 15%
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