Thinking of building chemical processing plant

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Reference no: EM132051256

GDebi Enterprises is thinking of building a chemical processing plant to produce 4-hydroxy-3-methoxybenzaldehyde. The firm estimates that the initial cost of the project will be $12.1 million, and the plant will produce cash inflows of $6.9 million for the next 5 years, after which time the project will terminate. In the 6th year however, the firm will need to clean up the site, which it estimates will cost it $3.5 million. The discount rate the firm wants to use for the project is 11 percent. What is the NPV of this project? (Enter answer in millions.)

Reference no: EM132051256

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