P1013 NPV and EVA A project costs $2,500,000 up front and will generate cash flows in perpetuity

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P10–13 NPV and EVA A project costs $2,500,000 up front and will generate cash flows in perpetuity of $240,000. The firm’s cost of capital is 9%.

a. Calculate the project’s NPV.

b. Calculate the annual EVA in a typical year.

c. Calculate the overall project EVA and compare to your answer in part a.

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Principles Of Managerial Finance

ISBN: 9780133546408

7th Edition

Authors: Lawrence J Gitman, Chad J Zutter

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Question Posted: Jul 23, 2024 08:02 AM

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P1013 NPV and EVA A project costs $2,500,000 up front and will generate cash flows in perpetuity

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Principles Of Managerial Finance

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