Question: A firm is considering a project that will require an initial investment today and is expected to generate cash inflows of $50,000 for the next
A firm is considering a project that will require an initial investment today and is expected to generate cash inflows of $50,000 for the next 5 years (ie. years 1-5), followed by cash inflows in the amount of $24,000 for the following 5 years (ie years 6-10). If the project's IRR is 8% and the firm's WACC is 6.5%, what is the amount of the initial investment? $280,575 $264,852 $286,000 $370,000
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