Dried Inc. is evaluating the feasibility of a construction project. Construction would require an initial payment of $320,000 today, $160,000 one year from now, and $45,000 two years from now. Net returns of $80,000 are expected every year and the project would be sold for $450,000 after 10 years. Compute the NPV and determine if the project is feasible if the cost of capital is 12%. please sove this sum asap
Dried Inc. is evaluating the feasibility of a construction project. Construction would require an initial payment of $320,000 today, $160,000 one year from now, and $45,000 two years from now. Net returns of $80,000 are expected every year and the project would be sold for $450,000 after 10 years. Compute the NPV and determine if the project is feasible if the cost of capital is 12%. please sove this sum asap
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Dried Inc. is evaluating the feasibility of a construction project. Construction would require an initial payment of $320,000 today, $160,000 one year from now, and $45,000 two years from now. Net returns of $80,000 are expected every year and the project would be sold for $450,000 after 10 years. Compute the NPV and determine if the project is feasible if the cost of capital is 12%.
please sove this sum asap
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