A proposed investment is projected to generate £180,000 a year for four years. An additional investment of £80,000 is budgeted at the end of year 2 of the project and the project assets are expected to be sold for £50,000 at the end of year 4. The company proposing the project has a cost of capital of 10%. The net present value of the project is £70,002. What is the cost of the initial investment into the project at T0?

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The Answer of A proposed investment is projected to generate £180,000 a year for four years. An additional investment of £80,000 is budgeted at the end of year 2 of the project and the project assets are expected to be sold for £50,000 at the end of year 4. The company proposing the project has a cost of capital of 10%. The net present value of the project is £70,002. What is the cost of the initial investment into the project at T0?

A Proposed Investment Is Projected to Generate £180,000 a Year