Question: A six - year project has an initial cost of $ 9 million with an expected revitalization cost of $ 3 million in Year 5

A six-year project has an initial cost of $9 million with an expected revitalization cost of $3 million in Year 5. Inflows of $3 million are expected in Year 2 through to Year 5, and $4 million is expected in Year 6. The cost of capital for this project is 10% compounded annually. Should this project be launched? 1

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