224
2N4.1
Consider the following project:
| Year 0 |
1 |
2 |
3 |
4 |
| -10000 |
3500 |
3500 |
3500 |
-300 |
- Assume that your opportunity cost of
capital is 8%. What is the NPV? (1 pt)
- Would you advise your company to take the
project? Explain your reasoning (DO NOT just say "The
NPV is positive/negative." Explain what the NPV
tells you and why that would be good or bad for your
company. (2 pts)
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