At the end of 15 years the factory will be torn down at an


A proposed project will cost an estimated $2.2 billion to construct and will produce estimated OCF of $300 million a year for 15 years. At the end of 15 years, the factory will be torn down at an estimated TCF of -$900 million. Calculate the projects expected NPV using a discount rate of 12%.

NPV is $614,500

NPV is -$321,167

NPV is -$485,555

NPV is -$1,056,741

 

 

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Finance Basics: At the end of 15 years the factory will be torn down at an
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