Question
ABC Company in considering a loss control investment. The project will cost $96367. It will generate an after-tax net cash flow of $60,000 one year
ABC Company in considering a loss control investment. The project will cost $96367. It will generate an after-tax net cash flow of $60,000 one year after investment and an after-tax net cash flow of $50,000 two years after investment. Assuming interest rate is 6% in year 1 and 5% in year 2, what is the net present value (NPV) of this project, round to nearest dollars?
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Continuous Time Finance
Authors: Robert C. Merton
1st Edition
0631185089, 978-0631185086
