What is your recommendation about the project


Operation at your current factory - for Which you paid $3m-produce annual operating cash flow of $1.5M. you are considering a major overhaul to the machinery. the project would cost $1.6M but increase your annual operating cashflow to a total of $2m each year. in either case the factory has a useful life of 4 more years, after which it will be worthless. What is your recommendation about the project (NPV)? the cost of capital for the project is 11%

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Financial Management: What is your recommendation about the project
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