Walmart Inc. has been offered a business deal. If they take this deal, they will receive...

 

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Walmart Inc. has been offered a business deal. If they take this deal, they will receive $3,000 each of the next 5 years (these are years 1, 2, ..., 5). The business opportunity requires an initial investment of $2,000 at time 0 plus and additional investment of $4,000 at year 2. What is the net present value (NPV) of this deal if the cost of capital is 5%? Walmart Inc. has been offered a business deal. If they take this deal, they will receive $3,000 each of the next 5 years (these are years 1, 2, ..., 5). The business opportunity requires an initial investment of $2,000 at time 0 plus and additional investment of $4,000 at year 2. What is the net present value (NPV) of this deal if the cost of capital is 5%?

Answer rating: 100% (QA)

Cash flows Cash flow in year 1 3000 Cash flow in year 2 3000 Cash flow in year 3 3000 Cash flow in y... View the full answer