Question
Calculate NPV for the following: The cost of capital is 12% a. The project has an initial investment of $20,000 with expected after-tax operating cash
Calculate NPV for the following:
The cost of capital is 12%
a. The project has an initial investment of $20,000 with expected after-tax operating cash flows of $7,000 the first year, $8,000 the second year, $9,000 the third year, $10,000 the fourth year, and $11,000 the fifth year. In addition, a cash payment of $17,500 must be made at the end of Year 54 to pay for environmental costs incurred at the termination of the project.
b. Initial investment of $20,000 with expected after-tax operating cash flows of $12,000 per year for each of the next 6 years. In addition, an additional investment of $38,000 must be made at the end of Year 3. Show all caclulations in excel please!
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