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A project generates the following cash flows; Beginning of years: 1 ($100,000) (contractors fees) 2 ($200,000) (contractors fees) 3 ($200,000) (contractors fees)
- A project generates the following cash flows; Beginning of years: 1 – ($100,000) (contractors’ fees) 2 – ($200,000) (contractors’ fees) 3 – ($200,000) (contractors’ fees) End of Year 3 : $1,000,000 (sales) Calculate the NPV of the project using a risk discount rate of 20% per year. A. $500,000 B. $173,148 C. $166,667
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Corporate Finance and Investment decisions and strategies
Authors: Richard Pike, Bill Neale, Philip Linsley
8th edition
1292064064, 978-1292064161, 1292064161, 978-1292064062
