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What is the net present value of a 7-year project with the following expected cash inflows (in millions) as shown below? Suppose that the project
What is the net present value of a 7-year project with the following expected cash inflows (in millions) as shown below? Suppose that the project requires an upfront investment of $800 million and no other costs in all other years. Assume the discount rate of 12%.
Year 1=$10
Year 2=$10
Year 3=$10
Year 4=$90
Year 5=$90
Year 6=$90
Year 7=$1000
a. 500 million
b. -169.8 million
c. 630.2 million
d. 1430.2 million
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