Cecilia owns her business and is considering an investment project, which requires an initial cost of $10,000. In addition, the

Question

Cecilia owns her business and is considering an investment project, which requires an initial cost of $10,000. In addition, the project requires (additional) shutdown costs of $3000 four years from now.
benefit side is: the project will pay $5000 each year for the next three years.
What is the NPV of this investment project if the cost of capital is 7%?

Kunduz · Accepted Answer

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