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Suppose Extensive Enterprisess CFO is evaluating a project with the following cash inflows. She does not know the projects initial cost; however, she does know
Suppose Extensive Enterprisess CFO is evaluating a project with the following cash inflows. She does not know the projects initial cost; however, she does know that the projects regular payback period is 2.5 years.
Year | Cash Flow |
---|---|
Year 1 | $275,000 |
Year 2 | $400,000 |
Year 3 | $400,000 |
Year 4 | $475,000 |
If the projects weighted average cost of capital (WACC) is 10%, what is its NPV?
$314,009
$330,536
$396,643
$347,063
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