Question: Net Present Value Analysis for New Facility An organization is considering a new manufacturing facility. As an operations manager, you have been asked to compute
Net Present Value Analysis for New Facility An organization is considering a new manufacturing facility. As an operations manager, you have been asked to compute the net present value (NPV) based on the marketing teams acquisition and cash flow projections. Facility Acquisition in Year 0: $3,000,000 Weighted Average Cost of Capital (WACC): 10.5% Cash Flow in Year 1: $432,500 Cash Flow in Years 2-10: 4%> Prior Year Calculate the NPV and determine if the facility meets the organizations threshold for acceptance as defined by the NPV metric. In the MS Excel workbook, calculate the NPV value, state Accept or Reject, and provide an explanation for your decision. You do not have to submit a MS Word file.
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