Question
Your company is considering investing in a new project that costs $1,000,000 and is expected to generate cash flows of $200,000 per year for the
Your company is considering investing in a new project that costs $1,000,000 and is expected to generate cash flows of $200,000 per year for the next 5 years. The company's cost of capital is 10%. Calculate the net present value (NPV) of the project and decide whether the company should invest in the project.
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Management and Cost Accounting
Authors: Colin Drury
8th edition
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