Question: ATC is evaluating project Awhich is a 2-year project with expected cash flows of -516,000 today: 512.000 in 1 year and 58,000 in 2 years.
ATC is evaluating project Awhich is a 2-year project with expected cash flows of -516,000 today: 512.000 in 1 year and 58,000 in 2 years. Project A is considered more risky than an average-risk project at XYZ. such that the appropriate discount rate for it is 1.45 percentage points different than the discount rate used for an average-risk project at XYZ. What is the NPV of project A if the weighted average cost of capital for XYZ is 4.82 percent and the internal rate of return (IRR) for project is 17.54 percent? a. 53.095,67 (plus or minus $5.00) b. 52.729.38 (plus or minus 55.00) C.-5264,68 (plus or minus 55.00) d. 52.375.83 (plus or minus 55.00) e. None of the above is within 55.00 of the correct
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