(NPV with varying required rates of return)

Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $5,000,000

and would generate annual free cash inflows of $1,200,000 per year for 6 years. Calculate the project's NPV given:

TO SOLVE: THANK YOU!

a. A required rate of return of 8 percent

b. A required rate of return of 12 percent

c. A required rate of return of 14 percent

d. A required rate of return of 18 percent