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Barry Company is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected
Barry Company is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.
Answer | WACC: | 8.50% | |||||
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flows | -$1,100 | $400 | $390 | $380 | $370 | $360 |
| a. | $319.05 | |
| b. | $403.86 | |
| c. | $496.74 | |
| d. | $407.89 | |
| e. | $488.66 Include formula |
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