Question
Anderson Systems is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's
Anderson Systems is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected.
| WACC: | 14.50% | |||
| Year | 0 | 1 | 2 | 3 |
| Cash flows | -$1,000 | $500 | $500 | $500 |
| $126.96 | ||
| $137.54 | ||
| $128.47 | ||
| $151.15 | ||
| $160.21 |
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International Finance
Authors: Keith Pilbeam
5th Edition
1350347094, 978-1350347090
