Question
A project costs $1.8 million today to get started and will produce after-tax cash flows of -$200,000,$0,$200,000,$400,000 in years 1,2,3,4. After year 4 the cash
A project costs $1.8 million today to get started and will produce after-tax cash flows of -$200,000,$0,$200,000,$400,000 in years 1,2,3,4. After year 4 the cash flows will increase by 3% per year forever. What is the NPV of the project if the discount rate is 15%?
- $89,035
- $746,523
- $349,311
- $217,809
- $367,610
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
14th edition
1337090581, 978-1337090582
