Question: Your firm is considering a project with a five - year life and an initial cost of $ 2 6 0 , 0 0 0
Your firm is considering a project with a fiveyear life and an initial cost of $ The discount rate for the project is percent. The firm expects to sell units a year. The cash flow per unit is $ The firm will have the option to abandon this project after three years at which time they expect they could sell the project for $ You are interested in knowing how the project will perform if the sales forecast for years four and five of the project are revised such that there is a chance that the sales will be either or units a year, respectively. What is the net present value of this project given your sales forecasts? Use MS Excel
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