Question
1. ABC Corporation is considering building a new deposit that requires an initial cash outlay of $1,200,000 and is expected to generate after-tax cash inflows
1. ABC Corporation is considering building a new deposit that requires an initial cash outlay of $1,200,000 and is expected to generate after-tax cash inflows of $260,000 for eight years. The deposit is build on an idle piece of land with a current market value of $100,000.The required rate of return of ABC Corporation is 10.00%.
a. What is the investment?s NPV?
Answer: ___
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Personal Finance
Authors: Thomas Garman, Raymond Forgue
12th edition
9781305176409, 1133595839, 1305176405, 978-1133595830
