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Alien Corp. has been considering building an adult resort on a site originally purchased as investment property. Alien paid a consultant $275,000 to determine whether the plan is feasible, and has recently
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Alien Corp. has been considering building an adult resort on a site originally purchased as investment property. Alien paid a consultant $275,000 to determine whether the plan is feasible, and has recently found that the site is worth $2.75 MM. The original purchase price was $1.75 MM. If the expected outlay for building and staffing the resort is $5.0 MM.

Required:
What is the Net Investment when running an NPV?

User Jakub Kuszneruk
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Answer:

$7,025,000

Step-by-step explanation:

the net investment is equal to the sum of the cash outlays - the amount spent .$275,000 + $1,750,000 + $5,000,000 = $7,025,000

User Olivier Wilkinson
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