Question: here we are examining a new project. we expect to sell 6,400 units per year at $58 net cash flow apiece for the next 10
here
we are examining a new project. we expect to sell 6,400 units per year at $58 net cash flow apiece for the next 10 years. The annual operating cash flow is projected to be $58 x 6,400 = $371,200. The relevant discount rate is 12%, and the initial investment required is $1,750,000. What is the bas-case
NPV $_______________
After the first year, the project can be dismantled and sold for $1,620,000. If expected sales are revised based on the first years performance, below what level of expected sales would it make sense to abandon the project?
Level of expected sales ______________ units
is the question
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