#2 2. A project has the following cash flows: Two Three years years from from now Now -$4 million (minus) One year from now $4 $4 million million now -$3 million (minus) If the company's cost of capital is 15 percent, should it proceed with the project?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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#2
2. A project has the following cash flows:
Two
Three
years
years
from
from
now
Now
-$4
million
(minus)
One year
from
now
$4
$4
million million
now
-$3
million
(minus)
If the company's cost of capital is 15 percent, should it proceed with the project?
Transcribed Image Text:#2 2. A project has the following cash flows: Two Three years years from from now Now -$4 million (minus) One year from now $4 $4 million million now -$3 million (minus) If the company's cost of capital is 15 percent, should it proceed with the project?
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