Medela's Entertainment systems is setting up a manufacture a new line of video game consoles. The cost of the manufacturing equipment is $1,750,000. Expected cash flows over the next four years are $725,000, $850,000, 1,200,000, and $1,500,000. Given the company's required rate of return of 15 percent, what is the NPV of this project?
Npv= - initial cash outflow + present value of cash inflows... View the full answer
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See that first cost of 1750,000 is a capital expenditure and we can also call it as an Investment. For NPV, we calculate the... View the full answer