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You have already spent 122m on a particular project, and you calculate that the assets you purchased with this spending now have a resale value
You have already spent 122m on a particular project, and you calculate that the assets you purchased with this spending now have a resale value of 88m and no alternative uses. To proceed with this project you would now need to invest a further 16m. The result will be an asset that you expect to sell at 245m in 5 years from now. Your discount rate is 9% You now need to assess whether to proceed with this investment. For this purpose, what would you calculate as the NPV of this investment? Your calculation should ignore any real option value of the investment. 8 15 Finis Select one: a. 143.2 Time b. 159.2 c.55.2 d. 21.2 e. 141.0
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