Question 42

Question 41 (1 point) A firm is considering an investment project that costs $250,000 today and $250,000 in one year, but would produce benefits of $50,000 a year, starting in one year, forever. What is the NPV of this investment project if the firm applies an annual discount rate of 8% to all future cash flows? Your Answer: Answer Question 42 (1 point) Calculate the NPV of an investment project that has an upfront cost of $1,000,000, but produces ongoing benefits of $222,000 each year forever, starting in one year. The firm's cost of capital is 6%. Your Answer: Page 4 of 5 Next Page MacBook Air 9 8 5