(Answered) A firm is considering a project that has the following

Economics

A firm is considering a project that has the following estimated cashflows:

Increased sales to business of $100,000 for the next six years (starting in one year's time)
Increased costs of $30,000 for the next six years (starting in one year's time)
The initial capital expenditure required is $200,000, and salvage value at the end of six years is expected to be $15,000.
Cost of the feasibility study is $15,000.

If the firm is facing a discount rate of 8%, what is the NPV of this project?

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Business Economics, Economics

Category:- Business Economics
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