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.
$
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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