Assume a firm takes on a project that requires an initial investment in year 0 of $42,000. assume that the project creates a NOPAT of $4,900 in year 1. If the weighted average cost of capital for this project is 10% what's the EVA for this project for year 1?

Assume a firm takes on a project that requires an initial investment in year 0 of $42,000. assume that the project creates a NOPAT of $4,900 in year 1. If the weighted average cost of capital for this project is 10% what's the EVA for this project for year 1?

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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NPV Calculate the net present value (NPV) for a 15-year project with an initial investment of $30,000 and a cash inflow of $8,000 per year. Assume that the firm has an opportunity cost of 17%. Comment on the acceptability of the project. The project's net present value is $ (Round to the nearest cent.)

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