You have just been hired as a consultant by Vogus Corporation, and have been asked to evaluate their capital budgeting procedures. They provide you with a list of recently accepted projects, and you learn that the firm accepts investments whose payback period is 5 years or less. After recovering from shock, you read that one of the accepted projects has an initial cost of $1,200. Except the initial investment are non-negative. 

If the appropriate discount rate is 20% per year, what is the worst-case NPV for this project?

Answer rating: 100% (QA)

Initial Investment 1900 Worst case NPV is in condition when pa... View the full answer