Question
company has the following project, that will last 3 years. The project will require an initial investment of 100,000 TL. and it will produce cash
company has the following project, that will last 3 years. The project will require an initial investment of 100,000 TL. and it will produce cash inflows of 35,000 TL in each of the first two years. If the opportunity cost of capital is 10%, what should be the minimum cash that should be generated by the Project in Year 3, for the project to be acceptable?
Years | Cash Flows |
0 | -100,000 |
1 | 35,000 |
2 | 35,000 |
3 | ? |
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