Practice Set for Chapters $1,2,3$

Name

Please answer all the following problems by typing the numerical solution into the space provided beneath each question. Please

$q,$ do your own work and do not share your work with others. Thanks.

Walmart recently acquired Vizio electronics to have better control over the delivery of advertising content. It was reported that this investment or capital budgeting project required a $$2,300,000,000$ investment. Assume that after this project is up and running, it will generate increased perpetual cash inflows of $$395,000,000$ per year. Based on the risk of this project, investors require a $10\%$ return. Will this investment generate an economic profit or economic loss? How much? The annual economic profit $($or loss$)$ is $q,.$