Initial capex investment of $1.5M at time zero, and $2.3M at time 1, as well as a ramping up of NWC of $0.9M immediately and and additional increase of $1.4M at time 1 (no more changes in NWC beyond time 1, that cash is never released as it is an infinitely lived project!), your product will be able to generate FCFs of $2.0M for years 2-10, and $0.9M for years 11 and beyond.  If the cost of capital is 10%, what is the NPV of this project?

Answer rating: 100% (QA)

To calculate the net present value NPV of the project we need to discount the future cash flows to t... View the full answer