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This question is worth 6 marks. Please show any formules that you are using and calculations. Question 41 Not yet answered Marked out of 6.00

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This question is worth 6 marks. Please show any formules that you are using and calculations. Question 41 Not yet answered Marked out of 6.00 A company is evaluating an investment that has infinite life. The first year's sales are expected to be $120 and the first year costs are projected to be $75. All sles and costs are before tax and the tax rate is 30% Both sales and costs are projected to increase eacj year by inflation which is forecasted at 2.6%. The real required return is 10%. The project cost is $450. Should the company undertake the investment? Flag question H3- == =

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