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Alphabet Inc. is considering two investment projects: Project X and Project Y. Project X requires an initial investment of $5,000,000 and is expected to generate
- Alphabet Inc. is considering two investment projects: Project X and Project Y.
- Project X requires an initial investment of $5,000,000 and is expected to generate cash flows of $2,000,000 per year for the next 5 years.
- Project Y requires an initial investment of $8,000,000 and is expected to generate cash flows of $3,000,000 per year for the next 7 years.
- Calculate the net present value (NPV) and profitability index (PI) for each project assuming a discount rate of 8%.
- Alphabet Inc. is considering two investment projects: Project X and Project Y.
- Project X requires an initial investment of $5,000,000 and is expected to generate cash flows of $2,000,000 per year for the next 5 years.
- Project Y requires an initial investment of $8,000,000 and is expected to generate cash flows of $3,000,000 per year for the next 7 years.
- Calculate the net present value (NPV) and profitability index (PI) for each project assuming a discount rate of 8%.
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
978-0321127211
