Discount rate the firm wants to use for project

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GDebi Enterprises is thinking of building a chemical processing plant to produce 4-hydroxy-3-methoxy benzaldehyde. The firm estimates that the initial cost of the project will be $10.3 million, and the plant will produce cash inflows of $7.1 million for the next 5 years, after which time the project will terminate. In the 6th year however, the firm will need to clean up the site, which it estimates will cost it $3.6 million. The discount rate the firm wants to use for the project is 14 percent. What is the NPV of this project? (Enter answer in millions.)

Reference no: EM132053085

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