Question

Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $ 5,000,000 and will generate annual free cash inflows of $ 1,000,000 per year for 8 years. Calculate the project’s NPV given:
a. A required rate of return of 9 percent
b. A required rate of return of 11 percent
c. A required rate of return of 13 percent
d. A required rate of return of 15 percent


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  • CreatedSeptember 11, 2015
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