Question
Bridgeport Inc. has a project that requires a $49,800 after-tax initial investment and produces these after-tax cash flows at each year-end: $18,400; $20,600; -$6,100; $41,500;
Bridgeport Inc. has a project that requires a $49,800 after-tax initial investment and produces these after-tax cash flows at each year-end: $18,400; $20,600; -$6,100; $41,500; $59,200; and $22,200. The appropriate domestic discount rate is 23.6 percent. The project is in another developing country, where extra risk is assumed to be 5.7 percent. Calculate the project's NPV. Should Bridgeport Inc. accept or reject the project? (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 2 decimal places e.g. 971.25.)
NPV | $ | ||
Bridgeport Inc. should the project. |
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