Question
Office Min is considering several risk-free projects: Project Initial cash flow Cash flow in 1 year A -8,500 10,200 B -4,000 4,200 C -6,800 7,820
Office Min is considering several risk-free projects:
| Project | Initial cash flow | Cash flow in 1 year |
|---|---|---|
| A | -8,500 | 10,200 |
| B | -4,000 | 4,200 |
| C | -6,800 | 7,820 |
The risk-free interest rate is 9%. What is the NPV of project A?
What is the NPV of project B?
What is the NPV of project C?
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
3rd Edition
0471375942, 978-0471375944
