Question: NPV calculation j. The rm has a project with an initial cost of $1 million, and annual cash savings of $300,000 for the next ve

NPV calculation j. The rm has a project with an initial

NPV calculation j. The rm has a project with an initial cost of $1 million, and annual cash savings of $300,000 for the next ve years. The risk adjustment for this project on the WACC is +5%. Calculate the net present value of this project using the WACC calculated above. (4 marks) k. Should the firm go ahead with the project? (1 mark)

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