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12 Mar 2018
The Hillary Company will invest $80,000 in a temporary project that will generate the following cash inflows for the next three years.
Year Cash Flow
1 $25,000
2 33,000
3 45,000
The firm will also be required to spend $10,000 to close down the project at the end of the three years. If the cost of capital is 10 percent, should the investment be undertaken?
The Hillary Company will invest $80,000 in a temporary project that will generate the following cash inflows for the next three years.
Year Cash Flow
1 $25,000
2 33,000
3 45,000
The firm will also be required to spend $10,000 to close down the project at the end of the three years. If the cost of capital is 10 percent, should the investment be undertaken?
Keith LeannonLv2
14 Mar 2018