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We are examining a new project. We expect to sell 7,600 units per year st $68 net cash flow apiece for the next 10 years.
We are examining a new project. We expect to sell 7,600 units per year st $68 net cash flow apiece for the next 10 years. In other words, the annual cash flow is projected to be $68 X 7,600 = $516,800. The relevant discount rate is 14 percent, and the initial investment required is $2,300,000.
What is the best case NPV?
Please explain solution.
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