Question
4. A USD 50,000 project with a 4% return over 5 years is expected to generate the following CF: Year 1 9.000 Year 2 12.000
4. A USD 50,000 project with a 4% return over 5 years is expected to generate the following CF:
| Year 1 | 9.000 |
| Year 2 | 12.000 |
| Year 3 | 11.000 |
| Year 4 | 13.000 |
| Year 5 | 15.000 |
Calculate the present value of the sum of future cash flows and the net present value of the project considering the discount is 8%. Would you recommend the investment ? Why/ why not
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Quantitative Analysis For Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Hale
14th Edition
0137943601, 9780137943609
