Question
A firm with a 13 percent cost of capital is considering a project for this years capital budget. The projects expected after-tax cash flows are
A firm with a 13 percent cost of capital is considering a project for this years capital budget. The projects expected after-tax cash flows are as follows:
| Year: | 0 | 1 | 2 | 3 | 4 |
| Cash flow: | -$13,000 | $5,500 | $6,400 | $5,600 | $4,300 |
Calculate the projects net present value (NPV).
| a. | $3,397.75 | |
| b. | $3,006.86 | |
| c. | $6,292.04 | |
| d. | $370.35 | |
| e. | $8,800.00 |
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Fundamentals Of Investments Valuation And Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
9th Edition
1260013979, 9781260013979
