Your firm is bidding on a contract to supply the federal government with aircraft parts for the next ten years.

After all your costs are taken into account, the contract will yield $12,000 in profits per year for all ten years. Since your weighted average cost of capital is 15%, what is the present value of this contract of this opportunity?

Answer rating: 100% (QA)

Step 12 Cash flow 12000 Time ... View the full answer