Project is stopped when costs exceed sales in single year

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A project requires an investment of £100 today. It has sales of £110 per year for 2 years and then increase by 6% per year thereafter. Costs will be £80 in the first year and increase by 10% for the next year and increase by 8% per year thereafter. Ignoring taxes calculate the NPV of the project at 5% discount rate. (Assume the project is stopped when costs exceed sales in a single year.)

Reference no: EM131512372

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