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Find does add value to the firm

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Question 1: Alhamra Enterprises would like to start a new product line will cost $30k today. Expected duration of the project is 8 years and discount rate is 15%. Cash inflows will be $20k per year for 8 years. Cash outflows including taxes will be $14,000 per year. We can sell the machines for $2k as the salvage value. Does it add value to the firm?

Reference no: EM132595474

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Find does add value to the firm : Expected duration of the project is 8 years and discount rate is 15%. Cash inflows will be $20k per year. Does it add value to the firm?
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