Question
Alphabet Inc is evaluating an investment opportunity with an initial outlay of $2,000,000. The project is expected to generate cash flows of $500,000 per year
Alphabet Inc is evaluating an investment opportunity with an initial outlay of $2,000,000. The project is expected to generate cash flows of $500,000 per year for three years. The discount rate is 8%. Calculate the net present value (NPV) of the investment for Alphabet Inc and advise the company on whether to proceed.
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Corporate Finance A Practical Approach
Authors: Michelle R Clayman, Martin S Fridson, George H Troughton, Matthew Scanlan
2nd Edition
1118217292, 9781118217290
