Question: A company is considering a project which will increase sales, but it also increases costs and will require an initial investment to launch the project.
A company is considering a project which will increase sales, but it also increases costs and will require an initial investment to launch the project. Free cash flows from the project are forecasted as shown below. There is no terminal value. The company has a cost of capital ie the required rate of return is What is the maximum investment the company should make for this project?
tableYear Year Year Year Year Year tableInitialInvestment$$$$
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