Megatech, a computer software developer, is considering a software development project that requires an initial investment of

Question:

Megatech, a computer software developer, is considering a software development project that requires an initial investment of $200,000 and subsequent investments of $150,000 and $100,000 at the end of the first and second years. Megatech expects this project to yield annual after-tax cash inflows for six more years: $90,000 at the end of each year for the third through eighth years. Megatech’s after-tax is 10 percent.
Calculate the of this project.

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...