A project requires an intial investment of $200,000 (at t = 0) and is expected to...
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A project requires an intial investment of $200,000 (at t = 0) and is expected to generate cash flows of $100,000 per year for the next 5 years (t =1 to t= 5). The present value of the 5 positive cash flows is around $ 374,300. The firm has a cost of capital of 10.5 percent. Should this project be accepted, and why? Use the NPV technique. O NPV $174,300 < 0, reject O NPV = $574,300 > 0, accept O NPV $174.300 > 0, accept O NPV $74,300 <0, accept - A project requires an intial investment of $200,000 (at t = 0) and is expected to generate cash flows of $100,000 per year for the next 5 years (t =1 to t= 5). The present value of the 5 positive cash flows is around $ 374,300. The firm has a cost of capital of 10.5 percent. Should this project be accepted, and why? Use the NPV technique. O NPV $174,300 < 0, reject O NPV = $574,300 > 0, accept O NPV $174.300 > 0, accept O NPV $74,300 <0, accept -
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Related Book For
Fundamentals of Financial Management
ISBN: 978-1337395250
15th edition
Authors: Eugene F. Brigham, Joel F. Houston
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