Question: NPV A planned warehouse expansion project has an estimated initial cost of $710,000. Based on a discount rate of 30 percent, the present value of

NPV

A planned warehouse expansion project has an estimated initial cost of $710,000. Based on a discount rate of 30 percent, the present value of the future cost savings from the expansion is $849,000.

Required:

To yield exactly a 30 percent return on investment, the actual investment expenditure should not exceed the $710,000 estimated cost by more than what amount?

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