Question
A project costs $10 today, generates a level cash flow of $20 starting in one year and continuing for ten years. Investors have a 10%
A project costs $10 today, generates a level cash flow of $20 starting in one year and continuing for ten years. Investors have a 10% cost of capital. What is the NPV of this project?
| Less than $120 | ||
| Between $120 and $150 | ||
| Between $150 and $200 | ||
| More than $200 |
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The Oxford Handbook Of Private Equity
Authors: Douglas Cumming
1st Edition
0195391586, 978-0195391589
