Question
A project costs 15 million and is expected to produce cash flows of 4 million per year for 15 years. The opportunity cost of capital
A project costs 15 million and is expected to produce cash flows of 4 million per year for 15 years. The opportunity cost of capital is 20 percent. If the firm has to issue stock to undertake the project and issue costs are 1 million, what is the project's APV? The 15-year annuity factor at 20% is 4.674.
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Probability And Statistics For Engineering And The Sciences
Authors: Jay L. Devore
9th Edition
1305251806, 978-1305251809
