A project has an initial cost of $1000000 and is expected to last for 2 years....
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A project has an initial cost of $1000000 and is expected to last for 2 years. In year 1, depreciation charge will be $100000 and earnings are expected to be $109397. In year 2, depreciation will be $100000 and earnings are expected to be $245664. Assume the required return is 10%. What is the value of this project? A project has an initial cost of $1000000 and is expected to last for 2 years. In year 1, depreciation charge will be $100000 and earnings are expected to be $109397. In year 2, depreciation will be $100000 and earnings are expected to be $245664. Assume the required return is 10%. What is the value of this project?
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