Question
XYZ Corp. is evaluating two projects. Project A has $50 thousand in up-front costs, and has after-tax cash flows of $10 thousand, $20 thousand, and
XYZ Corp. is evaluating two projects. Project A has $50 thousand in up-front costs, and has after-tax cash flows of $10 thousand, $20 thousand, and $30 thousand during the first three years. Project B has $80 thousand in up-front costs, and has after-tax cash flows of $15 thousand, $30 thousand, and $50 thousand. The companys WACC is 6%.
What is the NPV for project A?
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Economics For Financial Markets
Authors: Brian Kettell
1st Edition
0750653841, 978-0750653848
