A company has proposed a project that has initial costs of $10 million, on-going costs of $1 million per year and on-going benefits of $2 million per year. The project life is 20 years. Assuming all on-going costs and benefits occur at the end of each year and that interest is calculated annually, what is the Net Present Value of the project given a discount rate of 7.4%? -$20,272,486 $194,491 O $10,272,486 272,486 O $10,000,000

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A company has proposed a project that has initial costs of $10 million, on-going costs of $1 million per
year and on-going benefits of $2 million per year. The project life is 20 years. Assuming all on-going
costs and benefits occur at the end of each year and that interest is calculated annually, what is the
Net Present Value of the project given a discount rate of 7.4%?
-$20,272,486
$194,491
$10,272,486
O 272,486
$10,000,000
Transcribed Image Text:A company has proposed a project that has initial costs of $10 million, on-going costs of $1 million per year and on-going benefits of $2 million per year. The project life is 20 years. Assuming all on-going costs and benefits occur at the end of each year and that interest is calculated annually, what is the Net Present Value of the project given a discount rate of 7.4%? -$20,272,486 $194,491 $10,272,486 O 272,486 $10,000,000
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