Question
Today's date is January 1, 2015 and Wei needs some advice. Project A has cash flows of $89 starting at the beginning of this year
Today's date is January 1, 2015 and Wei needs some advice. Project A has cash flows of $89 starting at the beginning of this year (i.e. today), and continuing on for three more years (thus 4 years total). The cash flows then increase by 3% each year after that, for 5 years. After that, cash flows decrease by 8% for 6 years. Assume the discount rate is 12%.
What is the NPV for Project A?
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Financial Statement Analysis
Authors: K. R. Subramanyam, John Wild
11th edition
78110963, 978-0078110962
