The project is expected to cost $4 million and generate after-tax net cash flows of $200,000 at the end of year 1, $300,000 at the end of year 2, $400,000 at the end of year 3. The after-tax net cash flow after year 3 will grow at 5% per annum forever. If the project's after-tax discount rate is 10% p.a., What is the project's net present value?

Answer rating: 100% (QA)

To calculate the net present value NPV of the project we need to discount each cash flow to its pres... View the full answer