What is the net present value of an investment that costs $75,000 and has a salvage value of $45,000? The annual profit from the investment is $15,000 each year for 5 years. The cost of capital at this risk level is 12%
Textbook info: Operations Management, 8th Edition
Authors: Jay Heizer and Barry Render
This project will have an immediate (t=0) cash outflow of $75,000 (which might include machinery, and employee training costs). Cash inflows are expected ...