Question
ABC Company is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected
ABC Company is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.
| WACC: | 9.25% | |||||
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flows | -$1,100 | $400 | $390 | $380 | $370 | $360 |
| 1. | $349.07 | |
| 2. | $360.33 | |
| 3. | $442.91 | |
| 4. | $311.54 | |
| 5. | $375.34 |
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Public Finance Theory And Practice
Authors: M. Marlow
1st Edition
0030969603, 978-0030969607
