project costs

If the project can be downsized by 50% next year with a saving of $50 million (from perhaps selling some equipment and reducing the workforce), should you do the project?

Project Assignment A project has a present value (PV) of $100 million today and will be worth either $140 million or $80 million next year. Assume that the simple annual risk-free rate is 5%, and the project costs $105 million today. Should you do the project based on the NPV analysis? 2. If the project […]

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