What is the value of this project

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Reference no: EM132012518

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 $108,463. In year 2, depreciation will be $100,000 and earnings are expected to be $209,998. Assume the required return is 9%. What is the value of this project?

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Reference no: EM132012518

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