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A proposed nuclear power plant will cost $2.3 billion to build and then will produce cash flows of $310 million a year for 15 years.
A proposed nuclear power plant will cost $2.3 billion to build and then will produce cash flows of $310 million a year for 15 years. After that period (in year 15), it must be decommissioned at a cost of $910 million. |
What is project NPV if the discount rates are 4% and 17%?(Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in billions rounded to 3 decimal places.) |
Discount Rate | NPV |
4% | $billion |
17% | billion |
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