Question
A business will invest $65,000 in a temporary project that will generate the following cash flows for the next 3 years. Year 1 Cash Flow
A business will invest $65,000 in a temporary project that will generate the following cash flows for the next 3 years.
Year 1 Cash Flow
1 $24,000
2 $37,000
3 $34,000
They will be required to spend $17,000 to close down the project at the end of 3 years.
What is the Net Present value if capital is 12%?
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Valuation Workbook
Authors: Tim Koller, Marc Goedhart, David Wessels, Jeffrey P. Lessard, McKinsey & Company
4th Edition
0471702161, 978-0471702160
