Question
You are considering a project that requires an initial investment of $90,000 with a cost of capital of 12%. You expect the project to have
You are considering a project that requires an initial investment of $90,000 with a cost of capital of 12%. You expect the project to have a five-year life, and produce cash flows of $18,000 in year 1, $32,000 in year 2, $54,000 in year 3, $26,000 in year 4 and $10,000 in year 5.
What is this projects net present value?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
8th Canadian Edition
01259270114, 9781259270116
