Question

A project has an initial cost of $1,000,000 and is expected to last for 2 years....

A project has an initial cost of $1,000,000 and is expected to last for 2 years. In year 1, depreciation charge will be $100,000 and earnings are expected to be $179,295. In year 2, depreciation will be $100,000 and earnings are expected to be $238,407. Assume the required return is 12%. What is the value of this project? (Please ignore the $ sign when submitting your answer as the system will not read it).

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Answer #1

I don't think it's a complete question. Still tried to solve it with whatever information I have been providedwith. Let me know if anything else needs to be done. Thank You.

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