ABC Co. wants to invest $7.4 million up-front in a project that will generate cash flows of $3.8 million per year starting in a year. In year 6, the company will incur a shut-down cost of $1 .5 million. If the cost of capital if 9.90%, what is the NPV of the project? 

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of the project we need to discount all the cash flows to thei... View the full answer