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Bifur Co. is considering a new project. They have determined that the project has a net present value of $-173,250. However, they have also identified
Bifur Co. is considering a new project. They have determined that the project has a net present value of $-173,250. However, they have also identified several possible additional cash flows associated with the project. They are unsure whether these cash flows will happen. The project will last 7 years. Bifur Co. uses a discount rate of 11%. All projects at Bifur Co. are required to yield an NPV of at least $25,000. How much would the uncertain cash flows have to be each year for Bifur Co. to consider this project to be worth investing in?
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