Question
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.
| WACC: | 11.75% | |||||
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flows | -$1,100 | $400 | $390 | $380 | $370 | $360 |
| a. | 0$355.08 | |
| b. | 0$286.36 | |
| c. | 0$349.36 | |
| d. | 0$309.27 | |
| e. | 0$294.95 |
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Corporate Finance For Dummies
Authors: Michael Taillard
1st Edition
1118412796, 978-1118412794
