Suppose ABC Telecom Inc.’s CFO is evaluating a project with the following cash inflows. She does not know the project’s initial cost; however, she does know that the project’s regular payback period is 2.5 years.

Year	Cash Flow
Year 1	$300,000
Year 2	$425,000
Year 3	$500,000
Year 4	$400,000

If the project’s weighted average cost of capital (WACC) is 8%, what is its NPV?

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of the project we need to discount each cash flow back to the ... View the full answer