Question
A firm is evaluating a four-year project that requires an investment today of $2.5 million. In addition, the project will require a one-time injection of
A firm is evaluating a four-year project that requires an investment today of $2.5 million. In addition, the project will require a one-time injection of working capital of $248,000 today that will be recovered at project end. The project is estimated to provide operating cash flows of $787,000 each year for the four years. The firms discount rate is 11.2%.
What is the NPV of the project?
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N. Hyman
5th Edition
0030113172, 978-0030113178
