A project has expected free cash flows of $166, $262, $340, and $442 at the end of Years 1, 2, 3, and 4, respectively. What is its initial outlay if its IRR is 10.47%?

Answer: 914 need work

CrochetCo is considering an investment in a project which would require an initial outlay of $331823 and produce expected cash flows in years 1 through 4 of $82479 per year. You have determined that the currentafter-taxcost of the firm's capital (required rate of return) for each source of financing is as follows:

Source of Capital

Cost

Weight

Long-Term Debt

5%

57%

Preferred Stock

7%

14%

Common Stock

13%

29%

What is the net present value of this project?

Answer: 56192