Assume that buying the brewery will cost $1.1 million in upfront investment and net income...
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Assume that buying the brewery will cost $1.1 million in upfront investment and net income after taxes will be $50k per year. The hurdle rate is based on the balance you are currently earning on your investment account, 10%. The brewery will also depreciate at $100,000/year over this period. What is the EVA of the first five years of the buy option?
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