I Scream Ice Cream is considering a project that is expected tocost $98000 today; produce annual cash flows of $12100 forever(with the first CF expected in 1 year); and have an NPV of $3500.What is the cost of capital for the project?

I Scream Ice Cream is considering a project that is expected tocost $5000 today; produce a cash flow of $7100 in 4 years, and havean NPV of $200. What is the cost of capital for the project?

Answer rating: 100% (QA)

Answer To calculate the cost of capital for each project we can use the Net Present Value NPV formul... View the full answer