Question: A company is considering undertaking a cost reduction project which will require an outlay in one years' time (T1) of $650,000. Savings in costs will
A company is considering undertaking a cost reduction project which will require an outlay in one years' time (T1) of $650,000. Savings in costs will be $250,000 and T2 and $350,000 at T3. The company's cost of capital is 10% per annum. What is the Net Present Value of this project? A $220.400 B. $(220.400) c. $(121,500) D. 5121,500
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