Question
You have been asked to analyze a capital investment proposal. The project's cost is $386,422. Cash inflows are projected to be $899,000 in Year 1;
You have been asked to analyze a capital investment proposal. The project's cost is $386,422. Cash inflows are projected to be $899,000 in Year 1; $1,122,233 in Year 2; $112,233 in Year 3; $112,233 in Year 4; and $112,233 in Year 5. Assume that your firm discounts projects of similar risk at 16.4%.
What is the project's NPV?
$225,157.44
$1,399,020.17
$6,739,178.39
$6,075,223.06
$7,457,981.64
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Derivatives And Internal Models
Authors: Hans Peter Deutsch, Mark W. Beinker
5th Edition
3030229017, 9783030229016
