The Giendale Corp. is considering a real estate development project that will cost $5m Alion...
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The Giendale Corp. is considering a real estate development project that will cost $5m Alion to undertake and is expected to produce arnual inflows between $1 miliion and $4 million for two years: Management feels that if the project turns out really well the inflows will be $3 million in the first year and $4 million in the second. If things go very poorly, on the other hand, inflows of $1 million followed by $2.5 million are more likely. Develop a range of NPVs for the project if Glendale's ceat of ceptal is 6%. Round the answers to the nearest dollar. NPV for the good scenario. Enter your answer in dollars. For example, an answer of $1.2 million should be entered os 1,200,000, not 1.2. 5 NPV for the unfavorable scenario. Use a minus sign to indicate a negative NPV. Enter your answer in dollars. For example, an answer of 51,2 million should be antered as 1,200,000, not 1.2. 5
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