Anderson Systems is considering a project that has an initial cash outflow of $1 million and expected cash inflows of $540,000 per year for the next 3 years. The company uses a WACC of 11% to evaluate these types of projects. What is the project's NPV?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Anderson Systems is considering a project that has an initial cash outflow of $1 million and expected cash
inflows of $540,000 per year for the next 3 years. The company uses a WACC of 11% to evaluate these
types of projects. What is the project's NPV?
Your answer should be between 200000 and 700000, rounded to even dollars (although decimal places are
okay), with no special characters.
Transcribed Image Text:Anderson Systems is considering a project that has an initial cash outflow of $1 million and expected cash inflows of $540,000 per year for the next 3 years. The company uses a WACC of 11% to evaluate these types of projects. What is the project's NPV? Your answer should be between 200000 and 700000, rounded to even dollars (although decimal places are okay), with no special characters.
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