Question
Assume the following CFs, what is the PV, the NPV, and the IRR? Use the WACC as your required return. What is the most you
Assume the following CFs, what is the PV, the NPV, and the IRR? Use the WACC as your required return. What is the most you should pay for the set of cash flows and earn your WACC? WACC is 11.55%. Do not use excel.
| Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Investment | -200,000 | |||||||
| OCF | 50,000 | 60,000 | 40,000 | 70,000 | 15,000 | 0.00 | -10,000 | |
| Terminal CF | 78,000 |
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Options Futures And Other Derivatives
Authors: John C. Hull
8th Edition
0132164949, 9780132164948
