An auto maker planning to start a new venture in Oman. The costs incurred for the project would be an approximate total of $15,000 salaries for each of the project management team, $120,000 material costs, $4,000 costs incurred in maintenance. Rents paid by additional house occupants are expected to increase benefits by $ 50,000 annually. Using an estimated useful life of 20 years 9% cost of capital. Evaluate project's viability using net present value of the project.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
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An auto maker planning to start a new venture in Oman. The costs incurred for the project would
be an approximate total of $15,000 salaries for each of the project management team, $120,000
material costs, $4,000 costs incurred in maintenance. Rents paid by additional house occupants
are expected to increase benefits by $ 50,000 annually. Using an estimated useful life of 20 years
9% cost of capital. Evaluate project's viability using net present value of the project.
Transcribed Image Text:Question 3 An auto maker planning to start a new venture in Oman. The costs incurred for the project would be an approximate total of $15,000 salaries for each of the project management team, $120,000 material costs, $4,000 costs incurred in maintenance. Rents paid by additional house occupants are expected to increase benefits by $ 50,000 annually. Using an estimated useful life of 20 years 9% cost of capital. Evaluate project's viability using net present value of the project.
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