Question: a guaranteed thumps up for correct answer A project costs $800,000 plus $200,000 in shipping and installation. For the next five years the project is

a guaranteed thumps up for correct answer

A project costs $800,000 plus $200,000 in shipping and installation. For the next five years the project is expected to generate $500,000 in sales \& 200,00 in costs. The project is being depreciated straight line over five years ($200,000 per year). The firm's tax rate is 40% and K=10%. Find the NPV. Should the project be undertaken

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