Long company is considering expanding its production

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The Long Company is considering expanding its production. The cost of the project is $1,000,000. If implemented, the project will generate cash flows of $245,000 per year for five years. In Year 5, The Long Company will incur costs of $42,500 related to the project. If the WACC is 6 percent, calculate the NPV of the project. Would you recommend the company proceed with the project. Why or why not? Be sure to discuss quantitative as well as qualitative factors.

Reference no: EM131540020

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