The Real Green IT Machine (B): Analysis and Evaluation of a Proposed Capital Investment

Questions

Based on the investment rules (you can use one or more) , Would you recommend investing in this project and why?

Please use the following information:

Cost of new structure(building infrastructure) = 100 million

Cost of old structure(building infrastructure) = 30million Required rate of return = 12%

Expected cash flow for 10 years:

1 2 3 4 5 6 7 8 9 10

11.2 11.3 11.4 11.3 11.2 11.1 10.9 10.7 10.6 10.4