Your firm is considering a 10-year project that has a cost of capital of 14% per year.
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Question:
Your firm is considering a 10-year project that has a cost of capital of 14% per year. The project would require an immediate increase in net working capital of $950,000, but when the project ends the net working capital will return to its level before the project began. calculate what is the overall effect of the required increase in net working capital on the project's NPV?
Related Book For
Cost Benefit Analysis Concepts and Practice
ISBN: 978-0137002696
4th edition
Authors: Anthony Boardman, David Greenberg, Aidan Vining, David Weimer
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