Question
Harry's Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's
Harry's Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected.
| WACC: | 6.75% | |||||
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flows | -$1,000 | $300 | $300 | $300 | $300 | $300 |
| a. | 188.29 | |
| b. | 238.34 | |
| c. | 259.79 | |
| d. | 221.65 | |
| e. | 214.50 |
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1st Edition
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