What is the maximum amount of money (in dollars) which should be invested in a new capital project today under the assumption that the project's end-of-year cash inflows will be $400,000 each of the next four (4) years, assuming the cost of capital (or r) is 12.5%? Please note that I am asking you to find the value of -CF0, which is the maximum cash outflow today in order to justify investing in this project according to the NPV criteria. Please round your answer to the nearest whole dollar.

Maximum Cash Outflow Today (-CF0) =

Answer rating: 100% (QA)

To find the maximum cash outflow today CF0 for a capital project we can use the Net Present Value NP... View the full answer