Question
Lone Star uses an 11% cost of capital Net cost ($212,500) Year Net Cash Flow 0 ($212,500) 1 53,000 2 63,200 3 52,150 4 46,200
Lone Star uses an 11% cost of capital Net cost ($212,500)
Year Net Cash Flow
0 ($212,500) 1 53,000 2 63,200 3 52,150 4 46,200 5 45,350 6 41,100 7 36,000 8 36,000
What is the project's NVP? Explain the economic rationale behind the NPV. Could the NVP of this particular project be different for Lone Star Petroleum Company than for one of Chicago Valve's other potential customers? Explain.
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Practical Finance For Property Investment
Authors: Craig Furfine
1st Edition
036733304X, 978-0367333041
