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You are considering investing $10,000,000 to purchase an office building. The following are the projected ATCF's (After Tax Cash Flows) at the end of
You are considering investing $10,000,000 to purchase an office building. The following are the projected ATCF's (After Tax Cash Flows) at the end of each year along with the after tax reversion (i.e. how much you plan to sell the building for). Note: You must enter a value in Year 0 to complete this problem. Year ATCF Reversion 0 1 $800,000 2 $875,000 -- 3 $925,000 -- 4 $975,000 $12,000,000 A) What is the NPV of this project if your required rate of return is 12% (annually)? B) What is the IRR of this project?
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To calculate the NPV and IRR of the project we need to discount the cash flows and the reversion val...
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Introduction to Operations Research
Authors: Frederick S. Hillier, Gerald J. Lieberman
10th edition
978-0072535105, 72535105, 978-1259162985
