Question: Question Completion Status: ments A Moving to another question will save this response. Question 2 urces for P A project costs $200,000 per year for

Question Completion Status: ments A Moving to another question will save this response. Question 2 urces for P A project costs $200,000 per year for 5 years, starting immediately. You reckon that it will produce an cash inflow after operating costs of $170,000 a year for 10 years, starting 3 years from now. The opportunity cost of capital is 17 percent. a. What is the present value of costs? b. What is the present value of the cash inflows? C. Based on these cost and cash inflow estimates, what is your recommendation? (1+r)-1 FVIFr.t = (1+r) FVIFA, 1 (1 + r)" PVIFT. PVIFA, (1+r) 1 Anal 3 (12pt) Pathip A project costs S200,000 per year for 5 years, starting immediately. You reckon that it will produce an cash inflow after operating costs of $170,000 a year for 10 years, starting 3 years from now. The opportunity cost of capital is 17 percent. a. What is the present value of costs? b. What is the present value of the cash inflows? c. Based on these cost and cash inflow estimates, what is your recommendation? (1+r)" - 1 FVIFr,t = (1+r) FVIFA,n r 1 1 1 PVIErt (1+r)" PVIFArn (1+0) r
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