Question
Question 5 a. What is the NPV of a $45,000 project that is expected to have an after-tax cash flow of $14,000 for the first
Question 5
a. What is the NPV of a $45,000 project that is expected to have an after-tax cash flow of $14,000 for the first two years, $10,000 for the next two years, and $8,000 for the fifth year? Use a discount rate of 8%. (4 marks)
b. Calculate the PI for the project (2 marks)
c. Would you accept this project? Justify your response (2 mark)
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Developments In Entrepreneurial Finance And Technology
Authors: David B. Audretsch, Maksim Belitski, Nada Rejeb, Rosa Caiazza
1st Edition
1800884338,1800884346
