Question
Imagine Six Flags is evaluating an underperforming park. Six Flags wants to invest 50 mln at t=0 to get an incremental increase in cash flows
Imagine Six Flags is evaluating an underperforming park. Six Flags wants to invest 50 mln at t=0 to get an incremental increase in cash flows of $10 mln/year (that grows at 1 percent/year forever). The discount rate is 12%. What is the NPV of the investment decision?
A) 41.8
B) 151
C) -31.8
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ISE Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
12th International Edition
1265450099, 9781265450090
