Bramble Inc. has a project that requires a $51,900 after-tax initial investment and produces these after-tax...

 

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Bramble Inc. has a project that requires a $51,900 after-tax initial investment and produces these after-tax cash flows at each year- end: $19,450; $21,300; -$6,800; $42,550; $60,600; and $23,600. The appropriate domestic discount rate is 24.3 percent. The project is in another developing country, where extra risk is assumed to be 7.1 percent. Calculate the project's NPV. Should Bramble Inc. accept or reject the project? (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 2 decimal places e.g. 971.25.) NPV $ Bramble Inc. should reject accept the project. Bramble Inc. has a project that requires a $51,900 after-tax initial investment and produces these after-tax cash flows at each year- end: $19,450; $21,300; -$6,800; $42,550; $60,600; and $23,600. The appropriate domestic discount rate is 24.3 percent. The project is in another developing country, where extra risk is assumed to be 7.1 percent. Calculate the project's NPV. Should Bramble Inc. accept or reject the project? (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 2 decimal places e.g. 971.25.) NPV $ Bramble Inc. should reject accept the project.

Answer rating: 100% (QA)

To calculate the net present value NPV of the project we need to discount each cash flow at the appropriate rate and then sum them up The formula for ... View the full answer