Question
A project has an NPV of $54,000. Calculate the cost of capital of this project if it generates the following cash flows for six years
A project has an NPV of $54,000. Calculate the cost of capital of this project if it generates the following cash flows for six years after an initial investment of $210,000: (Round answer to 4 decimal places, e.g. 25.2513%.)
| Year 1: | $54,000 | ||
| Year 2: | $54,000 | ||
| Year 3: | $35,000 | ||
| Year 4: | $82,000 | ||
| Year 5: | $66,000 | ||
| Year 6: | $77,000 |
| Cost of capital | Type your answer here % |
Step by Step Solution
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SOLUTION To calculate the cost of capital ie the discount rate for this project we can use the formu...
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Basic Technical Mathematics
Authors: Allyn J. Washington, Richard Evans
12th Edition
0137529899, 9780137529896
