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A project requires 200 million dollars initial investment, with expected return of 110 million dollars at the end of year 1, and 121 million dollars
A project requires 200 million dollars initial investment, with expected return of 110 million dollars at the end of year 1, and 121 million dollars at the end of year 2. What is the net present value of this project? What does this NPV mean? a. What if the initial investment is only 180 million dollars? b. What if the initial investment is actually 220 million dollars? What does it mean when NPV = 0; NPV 0? A project requires 200 million dollars initial investment, with expected return of 110 million dollars at the end of year 1, and 121 million dollars at the end of year 2. What is the net present value of this project? What does this NPV mean? a. What if the initial investment is only 180 million dollars? b. What if the initial investment is actually 220 million dollars? What does it mean when NPV = 0; NPV 0
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