Question
A firm is considering improving the ways customers and employees interact with its Web site, which will cost $40,000 for design and maintenance. The free
A firm is considering improving the ways customers and employees interact with its Web site, which will cost $40,000 for design and maintenance. The free cash flows resulting from the project are provided in the table below:
Free cash Flow
Initial outly -40,000
Inflow year 1 17,000
Inflow year 2 16,000
Inflow year 3 15,700
The required rate of return is 13%. What is the net present value?
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Foundations Of Finance
Authors: Arthur J Keown, John D Martin, J William Petty
7th Edition
0133370356, 9780133370355
