Question
The Horizon Company will invest $60,000 in a temporary project that will generate the following cash inflows for the next three years: Year Cash Flow
The Horizon Company will invest $60,000 in a temporary project that will generate the following cash inflows for the next three years:
| Year | Cash Flow |
| 1 | $15,000 |
| 2 | $25,000 |
| 3 | $40,000 |
The firm will also be required to spend $10,000 to close down the project at the end of the three years. If the cost of capital is 10 percent, should the investment be undertaken?
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Financial Statements
Authors: Inc. BarCharts
1st Edition
1423223837, 978-1423223832
