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1. A decision to invest in a new facility must be made. The facility is a warehouse costing $100K. The warehouse has an
Posted: Wed Jul 06, 2022 5:55 am
by answerhappygod
- 1 A Decision To Invest In A New Facility Must Be Made The Facility Is A Warehouse Costing 100k The Warehouse Has An 1 (34.02 KiB) Viewed 15 times
1. A decision to invest in a new facility must be made. The facility is a warehouse costing $100K. The warehouse has an expected useful life of 35 years and a net salvage value of $25K. Annual receipts are expected to be $17K and annual costs of the facility are $4K for maintenance and $2K for taxes. The assumed interest rate = 6%. a. Compute the NPV of investing in the warehouse using the best estimated cash flows stated in the problem.