Mr. Science Inc. has an R & D project to create a new strain of bacteria for
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Question:
Mr. Science Inc. has an R & D project to create a new strain of bacteria for their enzyme production. The R & D will cost $1.5 million today. If successful they expect a $200,000 cash flow forever which will begin at the end of year four. Assume that the required rate of return is 8%, what is the NPV for this project?
A.$1,500,000.00
B.$1,250,560.67
C.$484,580.60
D.$814,814.81
E.None of the above
Related Book For
Managing Business Ethics Making Ethical Decisions
ISBN: 9781506388595
1st Edition
Authors: Alfred A. Marcus, Timothy J. Hargrave
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