A project with an initial cost of $510 is expected to produce a stable cash inflow...

 

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A project with an initial cost of $510 is expected to produce a stable cash inflow for 8 years. Using a required return of 10%, it has been determined that the project's NPV is 94. What must be the size of each of the annual cash flows? A project with an initial cost of $510 is expected to produce a stable cash inflow for 8 years. Using a required return of 10%, it has been determined that the project's NPV is 94. What must be the size of each of the annual cash flows?

Answer rating: 100% (QA)

Let x be the annual cash flow NPV can be determined as Present Value of Cash Inflow In... View the full answer