Question
Jacinto Inc is considering a project that will require an initial investment (year O) of $2,000,000. The project will generate no cash flows in
Jacinto Inc is considering a project that will require an initial investment (year O) of $2,000,000. The project will generate no cash flows in the first 3 years, but it will generate an inflow of $235,000 exactly four years from today. From that point forward, annual inflows will grow at a rate of 3% per year forever. The cost of capital is 10%. What is the project's NPV? Round your answer to the nearest dollar.
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
15th edition
130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295
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