A company has to make a decision about expanding its production facilities. Research indicates that...
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A company has to make a decision about expanding its production facilities. Research indicates that the desired expansion would require an immediate outlay of $150 000 and an outlay of a further $20,000 in 5 years. The net cash refurns are shown below. Find the net present value of the project. According to the net present value criterion, should the expansion project be undertaken if the required rate of return is 12%? Year 1 to Year 9 $25,000 per year Year 10 to Year 14 $20,000 per year
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