A company is evaluating an expansion. This capital investment will require a cash outflow today of $25,000,000.
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A company is evaluating an expansion. This capital investment will require a cash outflow today of $25,000,000. The firm estimates that the investment will pay out a cash flow of $3,200,000 per year for the next 20 years and nothing after. The risk-adjusted discount rate required on this project is 11%, calculate the net present value of this investment. (Round to 2 decimals)
Related Book For
Valuation The Art and Science of Corporate Investment Decisions
ISBN: 978-0133479522
3rd edition
Authors: Sheridan Titman, John D. Martin
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