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The cash flows associated with an investment project are an immediate cost of $2300 and benefits of $1200 in one year, $800 in two years,
The cash flows associated with an investment project are an immediate cost of $2300 and benefits of $1200 in one year, $800 in two years, and $2000 in three years. The cost of capital (WACC) is 10%. What is the project's NPV? Your Answer: Answer Hide hint for Question 6 NPV is the sum of the discounted cash flows. A firm is considering a potential investment project that would result in an immediate loss in free cash flow of $116 Million, but would generate positive free cash flow of $9 Million next year. The firm expects the free cash flow produced by the project to grow annually at 2% forever. The firm's weighted average cost of capital (WACC) is 9%. What is the NPV of the project? [Enter your answer in millions of dollars rounded to two decimal places. For example, if your answer is -1.23 Million, then enter just -1.23 in the answer box.] Your Answer: Answer Hide hint for Question 7 For this question, NPV = -FCFO + FCF1/(WACC-g)
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