Question: Buzcoin Corp. is working on a project where it has to invest $169,100 in inventory today that will be recovered by the end of the

Buzcoin Corp. is working on a project where it has to invest $169,100 in inventory today that will be recovered by the end of the project in 10 years. If the cost of capital is 11.60%, what is the impact on the NPV of the project? Assume all else remains the same.

a. $0

b. $19,616

c. $56,429

d. -$112,671

e. -$169,100

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!