Question: You are evaluating purchasing the rights to a project that will generate after tax expected operating cash flows of $93k at the end of each
You are evaluating purchasing the rights to a project that will generate after tax expected operating cash flows of $93k at the end of each of the next five years, plus an additional $1,000k non-operating cash flow at the end of the fifth year. You can purchase this project for $510k. If your firm's cost of capital (aka required rate of return) is 12.1%, what is the NPV of this project?Provide your answer in units of $1000,thus,$15000=15kand thus you should enter 15for your answer.
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