Question: A project costs $137 thousand to begin today. Next year it will cost $2.75 million to build a plant and will generate $350,000 per year

  • A project costs $137 thousand to begin today.
  • Next year it will cost $2.75 million to build a plant and will generate $350,000 per year forever starting in year 2.
  • WACC for the company is 12%.
  • What is the NPV of the project?

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