Question
Strange Manufacturing Company is purchasing a production facility at a cost of $21 million. The company expects the project to generate annual cash flows of
Strange Manufacturing Company is purchasing a production facility at a cost of $21 million. The company expects the project to generate annual cash flows of $7 million over the next five years. Its cost of capital is 18 percent. What is the net present value of this project? (Round to the nearest dollar)
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Financial Modeling
Authors: Simon Benninga
4th Edition
0262027283, 9780262027281
