You expect net income in year 1 and 2 to be 10000 and at, Ask an Expert

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You are the manager of a company that is evaluating a new project. This project will allow your company to manufacture and sell office chairs for 2 years. The initial capital required to buy the machinery for making office chairs costs $100,000. You expect net income in year 1 and 2 to be $10,000, and at the end of year 2, you know you can sell the machine for $90,000.

If the firm has a WACC(weighted average cost of capital) of 12%, what is the Net Present Value of this project?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M952838

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