Question
Apricot, Inc is considering developing a new app for its A-phone Z. The app would cost $310,000 to develop and is expected to produce cash
Apricot, Inc is considering developing a new app for its A-phone Z. The app would cost $310,000 to develop and is expected to produce cash flows of $80,000 per year for the first three years, then $60,000, $50,000, and $40,000 each of the last three years respectively. If their required return is 18%, what is the NPV of the new app?
-
A. -$68,438
-
B. $77,832
-
C. $551,562
-
D. $80,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Finance For Growing Enterprises
Authors: Edward W. Davis, Roger Buckland
1st Edition
1138679941, 978-1138679948
