Mo-Lees Sportswear is considering building a new factory to produce soccer equipment. This project would require an

Question:

Mo-Lee’s Sportswear is considering building a new factory to produce soccer equipment. This project would require an initial cash outlay of $10,000,000 and will generate annual free cash inflows of $2,500,000 per year for eight 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