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Question

A project to reduce cost at ABC Ltd has been proposed. It will require a cash outlay of £800,000 and the project

will generate cost savings £300,000 in year 2 and £600,000 in year 3. The company's cost of capital is 8%.


What is the net present value (NPV) of the project?

Select one:


£7,250 negative

£7,850 negative

£66,530 positive

£66,530 negative

Top Answer

The NPV of this project... View the full answer

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