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Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the
| Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the projects net present value (NPV). You know projects initial cost is $1,075,000 and projects regular payback period is 2.5 years. |
| Year |
| Year 1 $375,000 |
| Year 2 X |
| Year 3 $500,000 |
| Year 4 $450,000 |
| If the projects weighted average cost of capital (WACC) is 8%, find the projects NPV (rounded to the nearest dollar). Show all your work in finding the cash flow at time 2 and project's NPV. |
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Shape Up Your Finances The Personal Finances Handbook
Authors: Ian Birt
1st Edition
0734608268, 978-0734608260
