Question
A project has an NPV of $44,000. Calculate the cost of capital of this project if it generates the following cash flows for six years
A project has an NPV of $44,000. Calculate the cost of capital of this project if it generates the following cash flows for six years after an initial investment of $190,000: (Round answer to 2 decimal places, e.g. 25.25%.)
| Year 1: | $44,000 | ||
| Year 2: | $44,000 | ||
| Year 3: | $25,000 | ||
| Year 4: | $72,000 | ||
| Year 5: | $56,000 | ||
| Year 6: | $67,000 |
cost of capital= ?%
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Finance For Development
Authors: Barbara Stallings
1st Edition
0815780850, 978-0815780854
