Duck Commander is considering the purchase of a facility in IL to expand their operations. This project makes Phil happy, happy, happy yet Willie requires a financial analysis to explore whether this project makes sense. The facility will cost $4 million and will have a useful life of 10 years. At the end of the 10 years, the expected salvage value is $20,000. The facility will generate additional cash flow each year of $600,000. Duck Commander's cost of capital is 8%. Round answers to nearest dollar.

 

Assume Willie uses the net present value method to evaluate this project. Calculate the net present value   $

Answer rating: 100% (QA)

Tis the number of years in this case 10 years CF is the net cash flow in year t r is the discount ra... View the full answer