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Concrete Corporation is looking at investing $200,000 in a project that will produce the following cash flows. The cost of capital is 14.5%. Using NPV
Concrete Corporation is looking at investing $200,000 in a project that will produce the following cash flows. The cost of capital is 14.5%. Using NPV and PI, Should the project be undertaken?
| Year | Cash flow |
| 0 | ($200.000) |
| 1 | $40.000 |
| 2 | $55.000 |
| 3 | $75.000 |
| 4 | ($25.000) |
| 5 | $85.000 |
| 6 | $95.000 |
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Derivatives Markets
Authors: Robert McDonald
3rd Edition
978-9332536746, 9789332536746
