Question
A truck costs 100k and is projected to bring in cash flows of 20k per year for the first 4 years with a cash flow
A truck costs 100k and is projected to bring in cash flows of 20k per year for the first 4 years with a cash flow of 10k in year 5 with a salvage value of 15k in that same year. If the WACC is 7.5% then you should
- Reject as the NPV is a negative 21k
- Reject as the NPV is a negative 16k
- Accept as the NPV is a positive 11k
- d. Neither accept or reject
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An Introduction to Investment Banks, Hedge Funds, and Private Equity
Authors: David P. Stowell
1st edition
978-0123745033, 0123745039, 978-9380931074
