Question
1. Jazz World Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a
1. Jazz World Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.
| WACC: | 11.75% | ||||
| Year | 0 | 1 | 2 | 3 | 4 |
| Cash flows | -$1,200 | $400 | $425 | $450 | $475 |
2. Tuttle Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected.
| WACC: | 12.00% | ||||
| Year | 0 | 1 | 2 | 3 | 4 |
| Cash flows | -$1,000 | $350 | $350 | $350 | $350 |
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A Fast And Frugal Finance
Authors: William P. Forbes, Aloysius Igboekwu, Shabnam Mousavi
1st Edition
0128124954, 978-0128124956
