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What is the growth cash flow for each of the 4 years and the npv in the example below Purchase two new delivery trucks for
What is the growth cash flow for each of the years and the npv in the example below
Purchase two new delivery trucks for $ Annual maintenance costs are
estimated at $ for the first year and grow at pa for the remainder of
the fouryear life of this project. At the end of four years, it is expected the vehicles
could be sold for $ It is also estimated that this option will increase sales by
starting in year and then continue to grow at that rate until the end of the
project and then no more. The current revenues year of Big Leaver are
$ The risk associated with this option is relatively high, so the project has
been assigned a discount rate of
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