Question
Your firm is investigating expansion into a new market. The initial start-up costs of the expansion would be $750,000. Annual cash inflows would be $250,000
Your firm is investigating expansion into a new market. The initial start-up costs of the expansion would be $750,000. Annual cash inflows would be $250,000 per year for five years. Your firms required return is 8%. What would be the NPV and IRR of this expansion?
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Corporate Finance Theory And Practice
Authors: Aswath Damodaran
2nd Edition
0471283320, 9780471283324
