ABC Corp. is considering an investment in a new project that requires an initial investment of $500,000.
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ABC Corp. is considering an investment in a new project that requires an initial investment of $500,000. The project is expected to generate cash flows of $150,000 per year for the next five years. The company's cost of capital is 12%. Should the company invest in this project? Use the net present value (NPV) method to make your decision.
Related Book For
Valuation The Art and Science of Corporate Investment Decisions
ISBN: 978-0133479522
3rd edition
Authors: Sheridan Titman, John D. Martin
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