Question: ABC Corp. is analyzing a project that is expected to increase after-tax cash flows by $7.60 million per year for 5 years. They spent $1

ABC Corp. is analyzing a project that is expected to increase after-tax cash flows by $7.60 million per year for 5 years. They spent $1 million last year on consulting fees and need to spend $17.00 million in equipment today. What is the net present value of the project, if the required return is 9.80%? Ignore the impact of taxes and depreciation.

$11,957,785

$10,957,785

$12,957,785

$8,147,550

-$997,014

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