Question: financial Option 1 : GIVEN: Initial cash outflow = ( $ 1 0 million ) Net profits after tax = $ 1 . 2 5

financial Option 1:
GIVEN:
Initial cash outflow =($10 million)
Net profits after tax = $1.25 million per year
20 year expected useful life of building
Salvage value: $1.5 million
Discount rate is10%

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