Question
Borealis Drilling is considering building a new manufacturing plant. The new plant will cost $22.4 million to construct. Management uses a discount rate of 9.65%.
Borealis Drilling is considering building a new manufacturing plant. The new plant will cost $22.4 million to construct. Management uses a discount rate of 9.65%. They anticipate the following cash flows for next seven years:
| Year | Cash Flow |
| 1 | 3.850m |
| 2 | 4.250m |
| 3 | 4.505m |
| 4 | 4.750m |
| 5 | 4.915m |
| 6 | 5.090m |
| 7 | 5.230m |
The proposed project's net present value is closest to.....
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 10th Edition
1337902578, 978-1337902571
