Question
The manufacturing and launch of a new product would require cash outflows of $85,000 today, $81,000 in 1 year from today and $76,000 in 2
The manufacturing and launch of a new product would require cash outflows of $85,000 today, $81,000 in 1 year from today and $76,000 in 2 years from today. The net returns would be cash inflows of $3,000 monthly (end of month) for 10 years. If the cost of money is 8% compounded annually, determine the NPV of the project.
What is the PV of the inflows
What is the PV of the Outflows
What is the NPV of the project
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SOLUTION 1 PV of inflows Cash inflow 3000 per month Number of pe...
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
