Question
The company you work for is considering investing in a new piece of equipment that would cost $567,000 upfront. The equipment would generate cash of
The company you work for is considering investing in a new piece of equipment that would cost $567,000 upfront. The equipment would generate cash of 85,000 for the first 2 years. In the 3rd year, it would generate cash of 210,000, and it would generate cash of 75,000 in the 4th year. If your company's discount rate is 15%, then we can say that
Group of answer choices
Your company should invest in the project, because the net present value is positive.
Your company should not invest in the project, because the net present value is negative.
Your company should invest in the project, because the net present value is negative.
Your company should not invest in the project, because the net present value is positive.
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