A project has annual cash flows of $6,500 for the next 10 years and then $7,500 each year for the following 10 years. The IRR of this 20-year project is 12.67%. If the firm's WACC is 10%, what is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $
A project has annual cash flows of $6,500 for the next 10 years and then $7,500 each year for the following 10 years. The IRR of this 20-year project is 12.67%. If the firm's WACC is 10%, what is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...
Question
![A project has annual cash flows of $6,500 for the next 10 years and then $7,500 each year for the following 10 years. The IRR of this 20-year
project is 12.67%. If the firm's WACC is 10%, what is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest
cent.
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F083ab2a4-4a41-4458-a213-dd9ba7361304%2F3da21ac8-1f4b-4023-9a00-7508a70893f3%2Fboaz21_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A project has annual cash flows of $6,500 for the next 10 years and then $7,500 each year for the following 10 years. The IRR of this 20-year
project is 12.67%. If the firm's WACC is 10%, what is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest
cent.
$
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