Question
Project Z has an initial cost of $59,518, and its expected net cash inflows are $16,750 per year for 7 years. The firm has a
Project Z has an initial cost of $59,518, and its expected net cash inflows are $16,750 per year for 7 years. The firm has a WACC of 14 percent, and Project Zs risk would be similar to that of the firms existing assets. Calculate the net present value (NPV) of Project Z.
| a. | $12,311.11 | |
| b. | $57,732.00 | |
| c. | $12,660.52 | |
| d. | $71,829.11 | |
| e. | $43,332.88 |
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Elements Of Financial Risk Management
Authors: Peter Christoffersen
2nd Edition
0128102357, 9780128102350
