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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 340 Weeks Ago, 1 Day Ago |
| Questions Answered: | 19234 |
| Tutorials Posted: | 19224 |
MBA (IT), PHD
Kaplan University
Apr-2009 - Mar-2014
Professor
University of Santo Tomas
Aug-2006 - Present
Bisbee Aerospace is seeking to undertake a new project to upgrade its ERP system. The project is expected to have a useful life of 5 years. The initial investment (cash outflow) is $1,000,000. The net cash inflow is expected to be $300,000 for each year of the year useful life. Determine the NPV of this project, using Excel, if the discount rate is 12% and inflation is expected to average 2%. Should this project be funded? If yes why, and if no, why not?
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