Question: A project to build a new sports complex involves a capital outlay of 2,400,000. Profits before depreciation each year would be 50,000 for 6 years.

A project to build a new sports complex involves a capital outlay of 2,400,000. Profits before depreciation each year would be 50,000 for 6 years. The cost of capital is 12%. Is the project worthwhile? (use the Discount Cash Flow Technique to calculate the Net Present Value and assess whether the project is indeed worthwhile.)

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