Question
You are considering an investment project with the immediate cash outflow (CF0) of -$1,800. The project is expected to bring in constant cash flows of
You are considering an investment project with the immediate cash outflow (CF0) of -$1,800. The project is expected to bring in constant cash flows of $220 from year 1 to year 10, then $160 from year 11 to 20 (see below). What is NPV of the project if the WACC for this project is 8%?
| CF0 | -$1,800 |
| CF1~CF10 | $220 per year |
| CF11-CF20 | $160 per year |
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Principles Of Managerial Finance Brief
Authors: Chad J. Zutter, Scott B. Smart
8th Global Edition
1292267143, 978-1292267142
