× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
5
o
5
4
m
4
b
4
x
4
a
4
l
4
t
4
S
4
m
3
s
3
New Topic  
Coltonht Coltonht
wrote...
Posts: 430
4 years ago
SAP Inc. received a $1.5 million grant under its Small Business Innovation program.  SAP invested the grant money and developed a system to remove metal contaminants from storm water in shipyards.  The firm estimates that each shipyard spends $400,000 a year on storm water clean-up efforts.  If SAP is able to sign up and retain four shipyards in the first year onwards, what is the present value (PV) of the project (net of investment) if the cost of capital for SAP is 16% per year? Assume a cost of operations and other costs for SAP equal 60% of revenue.

▸ $2..5 million

▸ $2.3 million

▸ $1.9 million

▸ $2..1 million
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
Read 88 times
1 Reply

Related Topics

Replies
wrote...
4 years ago
$2..5 million
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  898 People Browsing
 101 Signed Up Today
Related Images
  
 1050
  
 251
  
 333
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 741