If testco uses a discount rate of 11 percent for projects, Financial Management

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If testco uses a discount rate of 11 percent for projects

Testco Corporation is considering adding a new product line. The cost of the factory and equipment to produce this product is $1,660,000.

Company management expects net cash flows from the sale of this product to be $370,000 in each of the next eight years.

If Testco uses a discount rate of 11 percent for projects like this, what is the net present value of this project?

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Financial Management: If testco uses a discount rate of 11 percent for projects

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