Atech Industries has initial resources of 150 million USD. Optimal operation requires an investment of 200 million USD. The firm must raise 50 million USD additional capital borrowing from the markets. Management projects 200 million USD investment (Optimal time 1 investment required) will generate 330 million USD cash flow at time 2. Market interest rate is 8%. Assume no dividend is paid at time 1. What is the closest present value of the Atech Industries in millions USD with this project at time 1 with the investment taking place in full? A -256 B-330 -276 -50 -300

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
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Problem 7P: Your division is considering two investment projects, each of which requires an up-front expenditure...
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Atech Industries has initial resources of 150 million USD. Optimal operation requires an investment of 200 million USD. The firm must raise 50 million USD additional capital borrowing from the markets. Management projects 200 million USD investment (Optimal time 1 investment required) will generate 330 million USD cash flow at time 2. Market interest rate is 8%. Assume no dividend is paid at time 1. What is the closest present value of the Atech Industries in millions USD with this project at time 1 with the investment taking place in full?
A -256

B-330

-276

-50

-300

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