Question
A project costs $500,000 and generates ongoing perpertual EBIT of $80,000. These would be the only cash flows from the project and are expected to
A project costs $500,000 and generates ongoing perpertual EBIT of $80,000. These would be the only cash flows from the project and are expected to be constant but inflation will result in annual increase of cash flows by 6%. WACC of the project is 13%. What will be the inflation adjusted NPV of the project. Tax rate is 40%.
$726,857
$226,857
$369,230
$526,857
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The Infographic Guide To Personal Finance
Authors: Michele Cagan CPA, Elisabeth Lariviere
1st Edition
1507204663, 978-1507204665
