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ABC Co. wants to invest $7.4 million up-front in a project that will generate cash flows of $3.8 million per year starting in a year.
ABC Co. wants to invest $7.4 million up-front in a project that will generate cash flows of $3.8 million per year starting in a year. In year 6, the company will incur a shut-down cost of $1 .5 million. If the cost of capital if 9.90%, what is the NPV of the project?
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To calculate the Net Present Value NPV of the project we need to discount all the cash flows to thei...
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Financial statements
Authors: Stephen Barrad
5th Edition
978-007802531, 9780324186383, 032418638X
