Question: The NPV & Payback Method Suppose you are evaluating a project with the cash inflows shown in the following table. Your boss has asked you
The NPV & Payback Method Suppose you are evaluating a project with the cash inflows shown in the following table. Your boss has asked you to calculate the projects NPV. You dont know the projects initial cost, but you do know the projects regular payback period is 2.5 years. Years Cash Flow Year 1 $375K Year 2 $450K Year 3 $425K Year 4 $500K 1. If the projects WACC is 9%, the projects NPV is which of the following? A. $349,299 B. $367,683 C. $386,067 D. $294,146
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