Consider a project with a net investment of $40,000 and the following net cash flows: Annual Cash Flow Year 1 $25,000 Year 2 $36,000 Year 3 $8,000 If the company's cost of capital is 5%, what would be the net present value of the project?
Consider a project with a net investment of $40,000 and the following net cash flows: Annual Cash Flow Year 1 $25,000 Year 2 $36,000 Year 3 $8,000 If the company's cost of capital is 5%, what would be the net present value of the project?
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 10P
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Question
Consider a project with a net investment of $40,000 and the following net cash flows:
Annual Cash Flow
Year 1 | $25,000 |
---|---|
Year 2 | $36,000 |
Year 3 | $8,000 |
If the company's cost of capital is 5%, what would be the
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