Question
Because of the coronavirus, a manufacturing company is adding equipment to make personal protective equipment (PPE). Without PPE for its employees, the company could not
Because of the coronavirus, a manufacturing company is adding equipment to make personal protective equipment (PPE). Without PPE for its employees, the company could not continue building essential products that healthcare providers and consumers need.
The initial investment (in $000s) is$300and the annual net cash flow inyear 1 is $800 and in year 2 is $400. Thesalvage valueof the equipment at theend of year 2will be$150. If the company's WACC is6.0%, what is theNPVof these cash flows in $000s?
Is it
- $944
- $965
- $1,040
- $900
- $937
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
