Draw the cash flow diagram for investment

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Reference no: EM131266230

Acme corporation is planning to open a new division for biotherapeutic drugs. The company expects to pay 20$ million for a set up cost. Annual operating expenses are expected to be 12$ million for the next 13 years. The company estimated that it will be able to generates annual revenue of 84$ million 8 years from now. Assuming a study period of 13 years. An MARR pf 7% per year and that there is no salvage value. Answer the following questions:

1) Draw the cash flow diagram for this investment?

2) should this investment be pursued or not ? use the present worth method.

Reference no: EM131266230

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