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Question #2 IBM wants to undertake a 5yrs project in the USA that has the projected free cash flow stream shown below. What is the
Question #2 IBM wants to undertake a 5yrs project in the USA that has the projected free cash flow stream shown below. What is the net present value (NPV) of the project if the WACC is 15%? Assume the initial investment in 2021 is $50,000 Years 2022 2023 2024 2025 2026 Free Cash Flows : $15,000 $12,000 $33,000 $14,000 $5,000 a. What is the total present value of the cash inflows? b. What is the Net Present Value (NPV) c. Should the project be accepted? Explain
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