Question
The University of Dallas is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if
The University of Dallas is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected.
| WACC: | 14.25% | ||||
| Year | 0 | 1 | 2 | 3 | 4 |
| Cash flows | -$1,000 | $350 | $350 | $350 | $350 |
Question 10 options:
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| a) | 14.59 |
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| b) | 8.11 |
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| c) | 9.43 |
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| d) | 11.42 |
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| e) | 9.91 |
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
