Q1. A project costs y + 3 today and generates a yearly cash flow of x...
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Q1. A project costs y + 3 today and generates a yearly cash flow of x + 2 starting next year. This cash flow grows at a rate of 2% per year. Furthermore, the project in 4 year generates an extra one-off negative cash flow of 3. Given a discount rate of 5%. What is the NPV of this project? Q2. The IRR of the project in Q1 is? Assume x=y=5 Q1. A project costs y + 3 today and generates a yearly cash flow of x + 2 starting next year. This cash flow grows at a rate of 2% per year. Furthermore, the project in 4 year generates an extra one-off negative cash flow of 3. Given a discount rate of 5%. What is the NPV of this project? Q2. The IRR of the project in Q1 is? Assume x=y=5
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1 To calculate the NPV of the project we need to discount all future cash flows to their present val... View the full answer
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Posted Date:
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