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A project will require an initial outlay of 21 million, followed by investments of 6 million at the end of each of the first 6
A project will require an initial outlay of 21 million, followed by investments of 6 million at the end of each of the first 6 years. The project is then anticipated to generate n annual cash inflows each in the amount of 14 million. These inflows will be paid at the end of the year, starting at the end of year 7. The cost of capital for the project is 12%. Find the value of n for which the project breaks even. (Note: You will likely not get an even number of years as your answer.) 15.7 13.1 11.8 14.4 17.0
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