Problem:
Story Company is investing in a giant crane. It is expected to cost $6.0 million in initial investment, and it is expected to generate an end-of-year after-tax cash flow of $3.0 million each year for three years.
Requirement:
Question: Calculate the NPV at 12%.
- $2.4 million
- $1.2 million
- $0.80 million
- $0.20 million
Note: Show all workings.