☐ ■ Project named A. Initial invest €4000K, then in the beginning of year 2 and 3 invest €2000K separately. From the end of year 3 to year 15. yearly income €2000K, cost for production is €400K yearly. Based on the information above please draw the cash flow diagram for this project and calculate NPV. %=15% ■ Accept or refuse this project? ■ Accurate to 0.01 for the final result, such as, 4.666 ≈ 4.67 10

Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter9: Pricing Construction Equipment
Section: Chapter Questions
Problem 6RQ
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☐
■ Project named A. Initial invest €4000K, then
in the beginning of year 2 and 3 invest
€2000K separately. From the end of year 3 to
year 15. yearly income €2000K, cost for
production is €400K yearly. Based on the
information above please draw the cash flow
diagram for this project and calculate NPV.
%=15%
■ Accept or refuse this project?
■ Accurate to 0.01 for the final result, such as,
4.666 ≈ 4.67
10
Transcribed Image Text:☐ ■ Project named A. Initial invest €4000K, then in the beginning of year 2 and 3 invest €2000K separately. From the end of year 3 to year 15. yearly income €2000K, cost for production is €400K yearly. Based on the information above please draw the cash flow diagram for this project and calculate NPV. %=15% ■ Accept or refuse this project? ■ Accurate to 0.01 for the final result, such as, 4.666 ≈ 4.67 10
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