Question
The following table shows the expected cash flows from a project. There are no cash flows beyond year 4. The cost of capital is 7%.
The following table shows the expected cash flows from a project. There are no cash flows beyond year 4. The cost of capital is 7%.
Calculate the projects NPV.
Note: Do not round your intermediate calculations. Enter your answer in thousands rounded to nearest whole number.
Calculate the economic rent in year 1.
Note: Do not round your intermediate calculations. Enter your answer in thousands rounded to 2 decimal places.
| Cash flows ($000s) | ||||
| C0 | C1 | C2 | C3 | C4 |
|---|---|---|---|---|
| 200 | 80 | 75 | 70 | 65 |
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Modeling Financial Time Series With S PLUS
Authors: Eric Zivot, Jiahui Wang
2nd Edition
0387279652, 0387323481, 9780387279657, 9780387323480
