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You have a construction project to evaluate costing 10,000,000 for construction on a 1,000,000 piece of land. It has a 20 year life with a scrap value of 1,000,000. There SG&A associated of 10,000 and no cost of goods sold. There will be no increase in working capital required. Other expenses include legal 40,000, survey 10,000 and capitalized interest 100,000. The cost of capital is 8%. Should you recommend the project?

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Financial Management, Finance

Category:- Financial Management
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