Answered You can hire a professional tutor to get the answer.
You are considering an investment in a new factory that will operate for 3 years. The initial investment will be 330722. The nominal revenues at the...
You are considering an investment in a new factory that will operate for 3 years. The initial investment will be 330722. The nominal revenues at the end of Year 1 will be $250000. Revenues will grow at a real rate of 1%. Inflation will be 2%. The nominal costs at the end of Year 1 will be $30000. Costs will grow at a nominal 4% rate. The investment will depreciated on a straight line basis to zero over 3 years. It will have zero market salvage value at the end of 3 years. The required real rate of return for the investment is 8%. The tax rate is 21%.
What is the NPV of the project?