Question
You are considering investing in a project that will cost $10,000 today and will generate the following cash flows over the next three years: $4,000
You are considering investing in a project that will cost $10,000 today and will generate the following cash flows over the next three years: $4,000 at the end of year 1, $3,000 at the end of year 2, and $2,000 at the end of year 3. If the discount rate is 8%, what is the Net Present Value (NPV) of this project? Should you invest in this project?
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Multinational Finance Evaluating Opportunities Costs and Risks of Operations
Authors: Kirt C. Butler
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