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Q12.13 Wyatt Corporation is considering a project requiring a $15 million initial investment. The expected project income and distributions are (S thousand) Net project
Q12.13 Wyatt Corporation is considering a project requiring a $15 million initial investment. The expected project income and distributions are (S thousand) Net project income (NOPAT) Distributions (FCF). Year 1 Year 2 Year 3 Year 4 Year 5 2,500 3.900 4,300 4,100 2,700 3,200 4,500 5,300 4,700 3,600 Using the AOIGM, determine whether the project is financially feasible assuming the project rate of retum is 12 percent.
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