Because of the coronavirus, a manufacturing company is adding equipment to make personal protective equipment (PPE). Without

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Because of the coronavirus, a manufacturing company is adding equipment to make personal protective equipment (PPE). Without PPE for its employees, the company could not continue building essential products that healthcare providers and consumers need.

The initial investment (in $000s) is$300and the annual net cash flow inyear 1 is $800 and in year 2 is $400. Thesalvage valueof the equipment at theend of year 2will be$150. If the company's WACC is6.0%, what is theNPVof these cash flows in $000s?

Is it

$944
$965
$1,040
$900
$937

Posted Date: May 16, 2024 08:00 PM

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Because of the coronavirus, a manufacturing company is adding equipment to make personal protective equipment (PPE). Without

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