A project requires a $1 million initial investment, and will yield incremental after-tax cash flows of $225,000 per year for 5 years. What is the NPV of the project if the required return is 12% APR compounded annually? Enter answer in dollars, rounded to the nearest dollar.
A project requires a $1 million initial investment, and will yield incremental after-tax cash flows of $225,000 per year for 5 years. What is the NPV of the project if the required return is 12% APR compounded annually? Enter answer in dollars, rounded to the nearest dollar.
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,...
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A project requires a $1 million initial investment, and will yield incremental after-tax cash flows of $225,000 per year for 5 years. What is the NPV of the project if the required return is 12% APR compounded annually?
Enter answer in dollars, rounded to the nearest dollar.
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