A Company has been offered a five years contract to provide components to a car manufacturer

Math Jan 05, 2023

A Company has been offered a five years contract to provide components to a car manufacturer. If they accept that project, there will be an initial investment of 200,000 EUR, an extra expense of 60,000 EUR in year 3, and yearly revenues of 70,000 EUR. The company wishes to gain a 13% at least (use this as a discount rate). What is the NPV of this operation? (15 points)