The management a Company is considering to purchase an equipment. The equipment will cost $50,000 and will create annual net canh infow $15.000The useful life of the equipment is 4 years. What will the NPV of the project? What witl be your recommendation about the project? The rate of return is10%.

Net Present Value Formula is NPV = Cash inflow / ( (1+i)t ) - Initial investmentwhere, i = return…

The management a Company is considering to purchase an equipment. The equipment will cost $50.000 and will create annual net canh intow $15.000 The useful life of the equipment is 4 years. What will the NPV of the project? What wil be your recommendation about the project? The rate ot return is 10%.

The management a Company is considering to purchase an equipment. The equipment will cost $50.000 and will create annual net canh intow $15.000 The useful life of the equipment is 4 years. What will the NPV of the project? What wil be your recommendation about the project? The rate ot return is 10%.

Information Technology Project Management

9th Edition

ISBN:9781337101356

Author:Kathy Schwalbe

Publisher:Kathy Schwalbe

Chapter7: Project Cost Management

Section: Chapter Questions

Problem 4QQ

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