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Your firm is considering a project with the following timeline and cash flows: l Year 0: -$1,800 l Year 1: $880 l Year 2: $948
Your firm is considering a project with the following timeline and cash flows:
l Year 0: -$1,800
l Year 1: $880
l Year 2: $948
l Year 3: $1,231
l Year 4: $845
l Year 5: $1,586
If the appropriate cost of capital is 7 percent, what's the PI statistic for the project, and should the firm accept or reject the project?
l Year 0: -$1,800
l Year 1: $880
l Year 2: $948
l Year 3: $1,231
l Year 4: $845
l Year 5: $1,586
If the appropriate cost of capital is 7 percent, what's the PI statistic for the project, and should the firm accept or reject the project?
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The present value PV of the cash flows can be calculated as ...
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Fundamentals of Corporate Finance
Authors: Berk, DeMarzo, Harford
2nd edition
132148234, 978-0132148238
