Question: A company is considering expanding its facilities. This would create an increase in after-tax net cash flow of $115,000 annually for 12 years. The expansion
A company is considering expanding its facilities. This would create an increase in after-tax net cash flow of $115,000 annually for 12 years. The expansion would require a capital investment (an initial outlay) of $480,000 today, and another $230,000 one year from now. If the appropriate cost of capital is 13%, what is the Net Present Value (NPV) of this project?
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