Revision 2 – Investment Appraisal

Net present value = 1,645,000 – 2,000,000 = ($355,000) so reject the project. The following information was included with the draft investment appraisal: 1. The initial investment is $2 million. 2. Selling price: $12/unit (current price terms), selling price inflation is 5% per year. 3. ................
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