A car manufacturer is looking to built a new manufacturing facility with the belief that it will allow for potential savings for the manufacturer worth $6 million annually for 9 years. The manufacturing facility's cost, which would be paid upon completion, is estimated at $26,850,000. Assuming that the estimate is correct and the manufacturer's cost of capital is 10.5% annually, would this be considered a good investment?

Answer rating: 100% (QA)

To determine if the new manufacturing facility is a good investment we need to calculate its net pre... View the full answer