Suppose a project costs 200000 today 100000 next year and


Suppose a project costs 200,000 today, 100,000 next year and 15000 to dispose of it in ten years when the project is discontinued. Once finished three years from today, it is expected to generate a net income of 40000 per year until it is discontinued. Does the project make sense at a discount rate of 2%? Can you please show a formula how to calculate this?

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Financial Management: Suppose a project costs 200000 today 100000 next year and
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