Question
A certain project will cost a firm $5,000 today.The project is not expected to produce any cash flows until the second year, at which point
A certain project will cost a firm $5,000 today.The project is not expected to produce any cash flows until the second year, at which point it is expected to produce $6,200.No other cash flows are anticipated.If the appropriate cost of capital is 15%, what is this project's NPV?Round your answer to the nearest dollar.
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
