Question
(Using Excel) The company paid $400,000 for the business. In addition, the company allocated $100,000 recognizing that the facility had a number of issues. Given
(Using Excel)
The company paid $400,000 for the business.
In addition, the company allocated $100,000 recognizing that the facility had a number of issues.
Given that the problems can be solved the company expects to see a net cash flow (revenue - costs + depreciation add back) of $150,000 per year starting in Year 1.
Assume a five-year investment life with a salvage value of $400,000 for continued earnings for year 6 and beyond.
Discount Rate 3%
What is NPV and what does this tell us?
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
