Question: Please help!! this is a finance problem I want to know how to use HP 10B financial calculator for this problem. Suppose we believe cash
Please help!! this is a finance problem
I want to know how to use HP 10B financial calculator for this problem.
Suppose we believe cash revenues from our fertilizer business will be $20,000 per year. Cash costs (including taxes) will be $14,000 per year. We will wind down the business in eight years. The plant, property, and equipment will be worth $2,000 as salvage at that time. The project costs $30,000 to launch. We use a 15% discount rate on new projects such as this one. Is this a good investment? If there are 1,000 shares of stock outstanding, what will be the effect on the price per share of taking this investment?
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