Question
Below are the cash flows and salvage values for a project that lasts for three years. Compute the NPV and IRR if the project is
Below are the cash flows and salvage values for a project that lasts for three years. Compute the NPV and IRR if the project is abandoned after 1 year. After 2 years. Is held for the full three years. Assume the cost of capital is 12%. Yr CF Salvage 0 ($500,000) 1 310,000 500,500 2 450,000 385,000 3 384,000 0
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
