A company is considering whether to buy an item of equipment for $20.000. The project would...
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A company is considering whether to buy an item of equipment for $20.000. The project would also require another initial investment of $8.000. The cash profits for the project would be year cash profit$ 15000 2 20000 3 12000 4 7000 The equipment would have a resale value of $5.000 at the end of Year 4. The cost of capital is 10%. Calculate the NPV of the project. A company is considering whether to buy an item of equipment for $20.000. The project would also require another initial investment of $8.000. The cash profits for the project would be year cash profit$ 15000 2 20000 3 12000 4 7000 The equipment would have a resale value of $5.000 at the end of Year 4. The cost of capital is 10%. Calculate the NPV of the project.
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