A company just paid $10 million for a feasibility study. If the company goes ahead with...
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A company just paid $10 million for a feasibility study. If the company goes ahead with the project, it must immediately spend another $81,854,519 now, and then spend $20 million in one year. In two years it will receive $80 million, and in three years it will receive $90 million. If the cost of capital for the project is 11 percent, what is the project's NPV? A company just paid $10 million for a feasibility study. If the company goes ahead with the project, it must immediately spend another $81,854,519 now, and then spend $20 million in one year. In two years it will receive $80 million, and in three years it will receive $90 million. If the cost of capital for the project is 11 percent, what is the project's NPV?
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To calculate the NPV we need to find the present value of all cash flows assoc... View the full answer
Related Book For
Probability And Statistics For Engineers And Scientists
ISBN: 9780495107576
3rd Edition
Authors: Anthony Hayter
Posted Date:
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