Question: Fox, Inc. is considering a five-year project that has initial after tax outlay or after tax cost of $170,000. The future after tax cash inflows
Fox, Inc. is considering a five-year project that has initial after tax outlay or after tax cost of $170,000. The future after tax cash inflows from its project for years 1 through 5 are $45,000 for each year. Fox uses the net present value method and has a discount rate of 11.25%. Will Fox accept the project? Fox accepts the project because the NPV is about $5, 455. Fox accepts the project because the NPV is about $165, 275. Fox rejects the project because the NPV is about $4, 725. Fox rejects the project because the NPV is about $154, 725
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