Marvin Enterprises
NPV new plant = 100 x [-10 + Σ ((6 - 3)/1.2t ) + 10/1.25
= $299 million
Change PV existing plant = 24 x Σ (1/1.2t ) = $72 million
Net benefit = 299 - 72 = $227 million
Value of Garbage Blaster Investment
barry
(Barry)
#1
Marvin Enterprises
NPV new plant = 100 x [-10 + Σ ((6 - 3)/1.2t ) + 10/1.25
= $299 million
Change PV existing plant = 24 x Σ (1/1.2t ) = $72 million
Net benefit = 299 - 72 = $227 million
Value of Garbage Blaster Investment