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Compliment of the season and thank you for the resource on this platform.
please I need clarification on the question bellow:
Able LTD is considering a new project for which the following information is available:
Initial cost – $300,000
Expected life – 5 years
Estimated scrap value – $20,000
Additional revenue from the project – $120,000 per year
Incremental costs of the project – $ 30,000 per year
Cost of capital – 10%
a) Calculate the Net Present Value of project (to the nearest $).
This is explained in my answer to a previous post here:
https://opentuition.com/topic/npv-7/
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