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Suppose that a project results in the following cash flows: An immediate investment of 39 million is required. Additional investments of 2.5 million will be
Suppose that a project results in the following cash flows: An immediate investment of 39 million is required. Additional investments of 2.5 million will be required at the end of the year for each of the next 5 years. The project will generate 25 cash inflows, which will be paid annually, The first inflow will occur at the end of year 6 and is expected to be in the amount of 16 million. Each subsequent cash inflow will be 2% less than the previous one. Assuming that the cost of capital is 10%, calculate the NPV of this project, in millions of dollars. 29.701 31.780 30.741 27.622 28.662
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