Question: What is the net present value of a replacement project whose cash flows are -$740,000; $557,000; $752,000; and $118,000 for years 0 through 3, respectively?
What is the net present value of a replacement project whose cash flows are -$740,000; $557,000; $752,000; and $118,000 for years 0 through 3, respectively? The firm has decided to assume that the appropriate cost of capital is 15.5% p.a. (round to the nearest dollar)
a.
$382542
b.
$469917
c.
$231898
d.
$1862542
Clear my choice
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
