Question
3. There is a project requesting an initial investment of $10,000. The project is expected to generate following cash flows over the next three years:
3. There is a project requesting an initial investment of $10,000. The project is expected to generate following cash flows over the next three years:
0 (now) = -10,000 Year 1 = 6000 Year 2 = 7000 Year 3 = 8000
If a firm plans to launch this project and its WACC (Weighted Average Cost of Capitals) is 10%, how much NPV (net present value) would be? USE HAND FORMULA NO EXCEL
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Financial Management
Authors: Geoffrey Knott
4th Edition
1403903824, 9781403903822
