Question
Centodue Company is considering a project with the following information: Centodue Company WACC is 11.15%. After how many years the company should abandon the project.
Centodue Company is considering a project with the following information:
Centodue Company WACC is 11.15%.
After how many years the company should abandon the project. You must show your work and explain your approach in writing in a few lines.
|
| Cash Flow | Expected Abandonment Cashflow |
| 0 | -50,000.00 | $50,000.00 |
| 1 | 17,381.00 | $ 38,780.00 |
| 2 | 15,612.00 | $ 28,170.00 |
| 3 | 11,891.00 | $ 18,170.00 |
| 4 | 11,342.00 | $ 8,780.00 |
| 5 | 9,878.00 | $ 0 |
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Green And Sustainable Finance
Authors: Simon Thompson
2nd Edition
1398609242, 978-1398609242
