Question: XYZ is considering a 3 -yr project. The initial outlay is $120,000, annual cash flow is $50,000 and the terminal cash flow is $10,000. The
XYZ is considering a 3 -yr project. The initial outlay is $120,000, annual cash flow is $50,000 and the terminal cash flow is $10,000. The required rate of return (cost of capital) is 15%. The net present value is $736.42. What if the annual cash flow increases to $59,000 instead? Re-calculate the NPV
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