Investment generates in additional sales

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Reference no: EM131933506

1. A project is expected to generate positive free cash flow of $4,000 per year for the next 5 years and $3,000 per year for the following 18 years. The required return is 10% and the project costs $28,000 to pursue. What is the project NPV?

2. Weymouth Company made a $210,000 investment in new machinery. Assuming the company's margin is 5%, what income will be earned if the investment generates $465,000 in additional sales?

Reference no: EM131933506

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