In the previous problem, suppose the project requires an initial investment in net working capital of 2,000
Question:
In the previous problem, suppose the project requires an initial investment in net working capital of €2,000 and the investment will have a market value of €1,000 at the end of the project. Assume the discounting rate to be 12 per cent. What is the project’s year 0 net cash flow? Year 1? Year 2? Year 3? Year 4? What is the new NPV?
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To calculate the projects net cash flows and NPV we need to consider the initial investment in net w...View the full answer
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Related Book For 
Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
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