What is the value of project

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Reference no: EM132012521

A project has an initial cost of $1,000,000 and is expected to last for 2 years. In year 1, depreciation charge will be $100,000 and earnings are expected to be $195,700. In year 2, depreciation will be $100,000 and earnings are expected to be $210,934. Assume the required return is 12%. What is the value of this project?

Reference no: EM132012521

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