Question
Jackson Motors is considering a project with the following expected cash flows: NINV = $400 million; NCF1 = $250 million; NCF2 = $350 million NCF3
Jackson Motors is considering a project with the following expected cash flows:
NINV = $400 million; NCF1 = $250 million; NCF2 = $350 million
NCF3 = $250 million; NCF4 = $600 million
If the cost of capital is 12% and the risk free rate of interest is 6%, what is the project's net present value (NPV)?
A.
$661.49 million
B.
$1,188.59 million
C.
$461.49 million
D.
$1,050.00 million
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Modern Financial Markets Prices, Yields, And Risk Analysis
Authors: Mark Griffiths, Drew Winters, David W Blackwell
1st Edition
0470000104, 9780470000106
