Question: In order to launch a new model rocket project. SpaceY is planning to accumulate excess inventory upfront in the first year of the project, leading
In order to launch a new model rocket project. SpaceY is planning to accumulate excess inventory upfront in the first year of the project, leading to an increase in net working capital (NWC) of $20.000 in year 1 . When the project is complete in year 5 , the inventory will decrease by the same $20,000. If the total impact of these changes in NWC in years 1 and 5 is to NOT change the net present value (NPV) of the project, what do you know about the required return (r) for the project? r=0% r>0% Not enough information to determine r0%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
