Question
26. Yoga Center Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV?
26. Yoga Center Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected.
| r: | 12.00% | ||||
| Year | 0 | 1 | 2 | 3 | 4 |
| Cash flows | $1,200 | $400 | $425 | $450 | $475 |
| a. | $90.02 | |
| b. | $50.93 | |
| c. | $118.12 | |
| d. | $11.31 | |
| e. | $62.88 |
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The Financial System Financial Regulation And Central Bank Policy
Authors: Thomas F. Cargill
1st Edition
1107035678, 9781107035676
