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Old 07-11-2016, 01:27 AM
avc avc is offline
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Join Date: Jul 2016
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Wink finance-- evaluate a project

a project is expected to have 2M revenue per year, beginning in year 1. the expense is expected to be 1M per year, escalating at CPI, 2.5%. The depreciation is 100K annually. Besides, expected capital expenditure is 500K per year, escalating at CPI, 2.5%. the cash tax rate is 40 per year. at the end of year 5, the project will be sold for 1M after tax. assuming the discount rate is 10%, what should we pay for the project?
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Old 05-23-2017, 09:21 AM
stephie stephie is offline
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Join Date: May 2017
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Default Re: finance-- evaluate a project

wouldn't that be 900k? or am i missing something?
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