Question
Carrefour is expecting its new center to generate the following cash flows: Years 0 1 2 3 4 5 Initial Investment ($35,000,000) Net operating cash-flow
Carrefour is expecting its new center to generate the following cash flows:
| Years | 0 | 1 | 2 | 3 | 4 | 5 |
| Initial Investment | ($35,000,000) | |||||
| Net operating cash-flow | $6,000,000 | $8,000,000 | $16,000,000 | $20,000,000 | $30,000,000 | |
a. Determine the payback for this new center.
b. Determine the net present value using a cost of capital of 15 percent. Should the project be accepted?
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Towards A Socioanalysis Of Money Finance And Capitalism Beneath The Surface Of The Financial Industry
Authors: Susan Long , Burkard Sievers
1st Edition
041571060X,1136666672
