Question: B) Company X is considering a project with an initial cost of $525,000. The project will not produce any cash flows for the first three
B) Company X is considering a project with an initial cost of $525,000. The project will not produce any cash flows for the first three years. Starting in year four, the project will produce cash inflows of $721,000 a year for three years. This project is risky, so the firm has assigned it a discount rate of 17 percent. What is the project's net present value?
C) What is the net present value of a project that has an initial cost of $49,000 and produces cash inflows of $8,000 a year for 17 years if the discount rate is 15 percent?
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