Question
Barcode Biz has invested in new machinery at a cost of $1,450,000. This investment is expected to produce cash flows of $640,000, $715,000, and $823,000
Barcode Biz has invested in new machinery at a cost of $1,450,000. This investment is expected to produce cash flows of $640,000, $715,000, and $823,000 over the next three years. If the opportunity cost of capital is 13 per cent per annum what is the NPV of this project (rounded to the nearest dollar)?
Select one:
A. $467,273
B. $310,054
C. $299,099
D. $246,702
A company is considering an investment that will cost $852,000 and have a useful life of 7 years. The cash flows from the project are expected to be $464,000 per year in the first two $88,000 per year for the last 5 years. If the appropriate discount rate is 12.1 percent per annum, what is the NPV of this investment (to the nearest dollar)?
Select one:
a. $182965
b. $1886965
c. $200463
d. $247590
A company is in the process of constructing a new plant at a cost of $18 million. It expects the project to generate cash flows of $10 million, $6 million, and $9 million over the next three years. The cost of capital is 17.3 percent p.a. What is the net present value of this project? (in millions to three decimals)
Select one:
a. $0.462
b. $36.462
c. $-2.261
d. $1.217
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