Bnn corporation is currently evaluating a project that requires an initial investment of $1,000,000 with a hurdle rate of 5%. Below are the expected cash inflow for the next five years of the project. year 1 400,000 year 2 300,000 year 3 200,000 year 4 100,000 year 4 200,000 1. how long will it take for bnn corporation to recover its initial investment? 2. what is the NPV of the investment? Round of answers to four decimal places
Bnn corporation is currently evaluating a project that requires an initial investment of $1,000,000 with a hurdle rate of 5%. Below are the expected cash inflow for the next five years of the project. year 1 400,000 year 2 300,000 year 3 200,000 year 4 100,000 year 4 200,000 1. how long will it take for bnn corporation to recover its initial investment? 2. what is the NPV of the investment? Round of answers to four decimal places
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bnn corporation is currently evaluating a project that requires an initial investment of $1,000,000 with a hurdle rate of 5%. Below are the expected
year 1 400,000
year 2 300,000
year 3 200,000
year 4 100,000
year 4 200,000
1. how long will it take for bnn corporation to recover its initial investment?
2. what is the NPV of the investment? Round of answers to four decimal places
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