What is present value of the project using parameter

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Question

There is a Capital Investment of $2,000,000 in year 0. The operating and maintenance cost of $25,000 per year is growing at 2 percent per year. (You should consider the growth as a separate input item as you should have done with "r.") There is an overhaul of $50,000 in year 5. All other parameters remain the same as provided in the previous module. (Although your book does not generate a diagram, table 5.3 is similar to what you are working on; a given project with various cash flows in and out.) What is the present value of the project using the parameters given in Modules 3 and 4? What is the net present value (NPV) of the project? Would you pursue the project?

Reference no: EM133496004

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