Question
Suppose Omni Consumer Productss CFO is evaluating a project with the following cash inflows. She does not know the projects initial cost; however, she does
Suppose Omni Consumer Productss 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 | $325,000 |
| Year 2 | $475,000 |
| Year 3 | $475,000 |
| Year 4 | $425,000 |
If the projects weighted average cost of capital (WACC) is 10%, what is its NPV?
$297,672
$253,021
$312,556
$327,439
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Fundamentals Of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
3rd Edition
0321541642, 9780321541642
