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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
A. projects NPV
B. Economic rent in 1 year
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