Question
Supreeme is thinking of expanding its showroom to include a cafe on the Bowery. The managers think that setting up the new location will cost
Supreeme is thinking of expanding its showroom to include a cafe on the Bowery. The managers think that setting up the new location will cost $300 (all numbers are in thousands). They expect to earn $150 the first year, $100 the second year, $75 the third year and $50 the fourth year. Their current WACC is 8%. What is the NPV of this project?
| A. | $69.44 | |
| B. | None of these. | |
| C. | $20.91 | |
| D. | $75.00 | |
| E. | $19.36 |
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
