Question
Project M requires an initial investment of $22.5 millions. The project is expected to generate $2.25 millions in after-tax cash flows each year forever. If
Project M requires an initial investment of $22.5 millions. The project is expected to generate $2.25 millions in after-tax cash flows each year forever. If the weighted average cost of capital (WACC) is 9% calculate the NPV of the project.
| A. | -2.5 million |
| B. | 2.5 million |
| C. | 0 |
| D. | none of the above |
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
17th Edition
1119561175, 978-1119561170
