Jacinto Inc is considering a project that will require an initial investment (year O) of $2,000,000....

 

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Jacinto Inc is considering a project that will require an initial investment (year O) of $2,000,000. The project will generate no cash flows in the first 3 years, but it will generate an inflow of $235,000 exactly four years from today. From that point forward, annual inflows will grow at a rate of 3% per year forever. The cost of capital is 10%. What is the project's NPV? Round your answer to the nearest dollar. Jacinto Inc is considering a project that will require an initial investment (year O) of $2,000,000. The project will generate no cash flows in the first 3 years, but it will generate an inflow of $235,000 exactly four years from today. From that point forward, annual inflows will grow at a rate of 3% per year forever. The cost of capital is 10%. What is the project's NPV? Round your answer to the nearest dollar.

Answer rating: 100% (QA)

To calculate the net present value NPV of the project we need to discount all the cash flo... View the full answer