What is the net investment when running an npv

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Reference no: EM13811256

Alien Corp. has been considering building an adult resort on a site originally purchased as investment property. Alien paid a consultant $250,000 to determine whether the plan is feasible, and has recently found that the site is worth $2.5 MM. The original purchase price was $1 MM. If the expected outlay for building and staffing the resort is $4.5 MM, what is the Net Investment when running an NPV?

a. $4.5 M

b. $5.75 M

c. $7.0 MM

d. $7.25 MM

Reference no: EM13811256

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