Question: Acme Co. is evluaing a project with the following cash inflows. We do not know the project's initial cost; however, she does not know that
Acme Co. is evluaing a project with the following cash inflows. We do not know the project's initial cost; however, she does not know that the project's regular payback period is 2.5 years.
Year 1 = $325,000
Year 2 = 475,000
Year 3 = 475,000
Year 4 = 450,000
If the project's WACC is 8%, what is its NPV?
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