7.3 q5- A project has the cash flows shown in the following table. If the cost of capital is 11%, what is the NPV of the project?Year1456.Incremental Free Cash Flow-980299299299299299160a. $211b. $224O c. $246O d. $232

NPV is the difference between present value of cash inflows and initial investment NPV =Present…

A project has the cash flows shown in the following table. If the cost of capital is 11%, what is the NPV of the project? Year 2 3 4 Incremental Free Cash Flow -980 299 299 299 299 299 160 O a. $211 O b. $224 O c. $246

A project has the cash flows shown in the following table. If the cost of capital is 11%, what is the NPV of the project? Year 2 3 4 Incremental Free Cash Flow -980 299 299 299 299 299 160 O a. $211 O b. $224 O c. $246

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows

Section10.6: Profitability Index (pi)

Problem 2ST

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Question

7.3

q5-

A project has the cash flows shown in the following table. If the cost of capital is 11%, what is the NPV of the project?
Year
1
4
5
6.
Incremental Free Cash Flow
-980
299
299
299
299
299
160
a. $211
b. $224
O c. $246
O d. $232

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