Made in an ice cream plant

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An investment of $2,000,000 was made in an ice cream plant. The plant requires $1,000,000 in repairs. the plant will be sold in 3 years for $2,500,000 to a local Co-OP. The cashflow of the plant are $1,000,000 in year 1, $2,000,000 in year 2 and 1 million in year 3. Calculate NPV. The cost of capital is 12%.

Reference no: EM132288809

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