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You are considering an investment decision on a project P1 where initial investment cost $350,000 and annual cash flows of $50,000 in the first 10
You are considering an investment decision on a project P1 where initial investment cost $350,000 and annual cash flows of $50,000 in the first 10 years (Year 1-10) and another $25,000 in the following 10 years (Year 11-20). Your required rate of return for an investment of a similar risk is 9%.
Calculate NPV of the investment opportunity. Should you invest? Why or why not?
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