Question

SK Inc. has a project that requires a $50,000 after-tax initial investment and produces these after-tax cash flows at each year-end: $18,000; $20,000; –$5,000; $40,050; $58,000; and $20,000. The appropriate domestic discount rate is 19.4 percent. The project is in another developing country, where extra risk is assumed to be 4.6 percent. Calculate the project’s NPV. Should SK Inc. accept or reject the project?



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  • CreatedFebruary 25, 2015
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