You manage a software company that requires internet bandwidth to produce output. Currently your company is using
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You manage a software company that requires internet bandwidth to produce output. Currently your company is using 79% of its capacity, but is considering an expansion to utilize the additional bandwidth. Doing so will require $11,000 in additional expenditures per year forever, and generate $28,000 additional profits each year forever. The expansion will require a one time cost of $100,000. What is the NPV of undertaking this expansion project? Assume a cost of capital of 17.8%.
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Related Book For
International Business and the New Realities
ISBN: 978-0136090984
2nd Edition
Authors: S. Tamer Cavusgil, Gary Knight, John R. Riesenberger
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