Essay
The Nu-Tech Company has a new project available to it at a cost of £6,000,000.The project that
they can sell 13,000 personal organizers at £172 in net cash flow for each of the next five years.Nu-
Tech's discount rate is 15%.What is the NPV of the investment? The executives of Nu-Tech are
concerned about the potential of future competition and a subsequent drop in sales and price.If
after two year you can dispose of the asset for £1,000,000 at what price would it make sense to
abandon the project?
Correct Answer:
Verified
NPV = £-6,000,000 + (13,000 x £172) A.15...View Answer
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Correct Answer:
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