Question
A project requires an initial investment today of $117,129.00. The project will last three years. However, the company believes that the risk involved with the
A project requires an initial investment today of $117,129.00. The project will last three years. However, the company believes that the risk involved with the project will increase over its life, so they would like a greater return for later cash flows. The table below shows the projected cash flows and the discount rates required for the project. Year 0 1 2 3 Cash flow -$117,129.00 $50,246.00 $42,403.00 $53,104.00 Discount rate 8.00% 15.00% 18.00%
What is the NPV of this project?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
