Singing Fish Fine Foods has $2,000,000 for capital investments this year and is considering two potential projects for the funds. Project 1 is updating the store's deli section for additional food service. The estimated after-tax cash flow of this project is $600,000 per year for the next five years. Project 2 is updating the store's wine section. The estimated annual after-tax cash flow for this project is $530,000 for the next six years. If the appropriate discount rate for the deli expansion is 9.5% and the appropriate discount rate for the wine section is 9.0%, use the NPV to
Singing Fish Fine Foods has
$2,000,000
for capital investments this year and is considering two potential projects for the funds. Project 1 is updating the store's deli section for additional food service. The estimated after-tax cash flow of this project is
$600,000
per year for the next five years. Project 2 is updating the store's wine section. The estimated annual after-tax cash flow for this project is
$530,000
for the next six years. If the appropriate discount rate for the deli expansion is
9.5%
and the appropriate discount rate for the wine section is
9.0%,
use the
If the appropriate discount rate for the deli expansion is
9.5%,
what is the NPV of the deli expansion?
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