Question: Suppose Extensive Enterprisess CFO is evaluating a project with the following cash inflows. She does not know the projects initial cost; however, she does know
Suppose Extensive Enterprisess CFO is evaluating a project with the following cash inflows. She does not know the projects initial cost; however, she does know that the projects regular payback period is 2.5 years. Year Cash Flow Year 1 $375,000 Year 2 $425,000 Year 3 $475,000 Year 4 $450,000 If the projects weighted average cost of capital (WACC) is 7%, what is its NPV?
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