ar my choice Project X has a life of 15 years. If undertaken today, the project is expected to generate an annu (after-tax) cash flow of $3000 for the first 10 years (year 1 through year 10) and $4000 per year for next 5 years (year 11 through year 15). The IRR of project X is 12.5%. If the cost of capital is 9.29% what is the project's NPV? O a. $2433.62 O b. $4429.58 ○ c. $4512.68 O d. $3212.13 ○ e. $3559.36 Of. $4139.85 g. $4612.33 Oh. $4328.96
ar my choice Project X has a life of 15 years. If undertaken today, the project is expected to generate an annu (after-tax) cash flow of $3000 for the first 10 years (year 1 through year 10) and $4000 per year for next 5 years (year 11 through year 15). The IRR of project X is 12.5%. If the cost of capital is 9.29% what is the project's NPV? O a. $2433.62 O b. $4429.58 ○ c. $4512.68 O d. $3212.13 ○ e. $3559.36 Of. $4139.85 g. $4612.33 Oh. $4328.96
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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
Transcribed Image Text:ar my choice
Project X has a life of 15 years. If undertaken today, the project is expected to generate an annu
(after-tax) cash flow of $3000 for the first 10 years (year 1 through year 10) and $4000 per year for
next 5 years (year 11 through year 15). The IRR of project X is 12.5%. If the cost of capital is 9.29%
what is the project's NPV?
O a. $2433.62
O b. $4429.58
○ c. $4512.68
O d. $3212.13
○ e.
$3559.36
Of. $4139.85
g. $4612.33
Oh. $4328.96
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