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Viviano Inc. is considering an investment project, which requires an up-front expenditure of $30 million. You estimate that the cost of capital is 10% and
Viviano Inc. is considering an investment project, which requires an up-front expenditure of $30 million. You estimate that the cost of capital is 10% and that the investments will produce the following after-tax cash flows in the next four years (in millions of dollars). What is the net present value of this project?
Year | Project Future Cash Flow |
1 | 5 |
2 | 10 |
3 | 15 |
4 | 20 |
A. | -$22.96 | |
B. | $7.04 | |
C. | $7.74 | |
D. | $37.74 | |
E. | $61.58 |
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