Does the project make sense at a discount rate

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Reference no: EM131022548

Suppose a project costs 200,000 today, 100,000 next year and 15000 to dispose of it in ten years when the project is discontinued. Once finished three years from today, it is expected to generate a net income of 40000 per year until it is discontinued. Does the project make sense at a discount rate of 2%? Can you please show a formula how to calculate this?

Reference no: EM131022548

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