Question
In: Finance
You are considering investment in a project which will cost $50 million which will be depreciated...
You are considering investment in a project which will cost $50 million which will be depreciated to 0 over the next 3 years. The project will generate revenues of $13 million per year for the next 6 years with no expenses (other than depreciation). The company’s cost is capital is 8% and the corporate tax rate is 40%. After the 6 years, the project ends. What is the NPV of the project?
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Expert Solution
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
jeff jeffy answered 1 year agoRelated Solutions
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years----------------net income
1------------------------ 211700
2 -----------------------186400
3---------------------- 165500
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