Question
Waterfront Manufacturing Company is purchasing a production facility at a cost of$21,000,000.The firm expects the project to generate annual freecash flows of$7,000,000over the next five
Waterfront Manufacturing Company is purchasing a production facility at a cost of$21,000,000.The firm expects the project to generate annual freecash flows of$7,000,000over the next five years.They also expect to sell the facility at the end of five years for an after-tax salvage value of$5,000,000.Its cost of capital is20percent.What is the net present value(NPV)of this project?
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Small Business Management Launching and Growing New Ventures
Authors: Justin Longenecker, Leo Donlevy, Terri Champion, William Petty, Leslie Palich, Frank Hoy
6th Canadian edition
176532218, 978-0176532215
