You are evaluating purchasing the rights to a project that will generate after tax expected operating cash
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Question:
You are evaluating purchasing the rights to a project that will generate after tax expected operating cash flows of $99k at the end of each of the next five years, plus an additional $1,000k non-operating terminal period cash flow at the end of the fifth year. You can purchase this project for $633k. If your firm's cost of capital (aka required rate of return) is 13.1%, what is the NPV of this project? Note: All dollar values are given in units of $1k = $1000. Provide your answer in units of $1000, thus, $15000 = 15k and thus you should enter 15for your answer.
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