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6. New Flyer Industries has decided to expand its production of hybrid transit buses. The firm expects incremental cash flows of $8 million per year for the next 8 years. The upfront cost of the expansion is $28 million, and there are additional flotation costs of $1.5 million. If the New Flyer's WACC is 10%, what is the overall NPV of the project? A) $34,500,000 B) $14,679,410 C) $36,000,000 D) $50,500,000 E) $13,179,410

6. New Flyer Industries has decided to expand its production of hybrid transit buses. The firm expects incremental cash flows of $8 million per year for the next 8 years. The upfront cost of the expansion is $28 million, and there are additional flotation costs of $1.5 million. If the New Flyer's WACC is 10%, what is the overall NPV of the project? A) $34,500,000 B) $14,679,410 C) $36,000,000 D) $50,500,000 E) $13,179,410

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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the answer A)is 34,500,000. please explain how to get this answer without the use of excel 

 

E) 8.33% 6. New Flyer Industries has decided to expand its production of hybrid transit buses. The firm expects incremental cash flows of $8 million per year for the next 8 years. The upfront cost of the expansion is $28 million, and there are additional flotation costs of $1.5 million. If the New Flyer's WACC is 10%, what is the overall NPV of the project? A) $34,500,000 B) $14,679,410 C) $36,000,000 D) $50,500,000 E) $13,179,410
Transcribed Image Text:E) 8.33% 6. New Flyer Industries has decided to expand its production of hybrid transit buses. The firm expects incremental cash flows of $8 million per year for the next 8 years. The upfront cost of the expansion is $28 million, and there are additional flotation costs of $1.5 million. If the New Flyer's WACC is 10%, what is the overall NPV of the project? A) $34,500,000 B) $14,679,410 C) $36,000,000 D) $50,500,000 E) $13,179,410
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