Question
Calculate the NPV of a project with the following cash flows and a 12% discount rate: Year01234 Cash Inflows$0$125 $150$200$225 Cash Outflows$400$150$100 $50$50 From years
Calculate the NPV of a project with the following cash flows and a 12% discount rate:
Year01234
Cash Inflows$0$125 $150$200$225
Cash Outflows$400$150$100 $50$50
From years 5 9, you will receive net cash inflows of $100 per year (hint: use ordinary annuity valuation formula with 12% as the interest rate, and be careful when deciding how many periods it takes to discount it to the present value).
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
