Cullumber Corp. management is planning to spend $650,000 on a new marketing campaign. It believes that this action will result in additional cash flows of $304,000 over the next three years. If the discount rate is 17.5 percent, what is the NPV of this project? (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45). Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, eg. 1,525.) The NPV is $
Cullumber Corp. management is planning to spend $650,000 on a new marketing campaign. It believes that this action will result in additional cash flows of $304,000 over the next three years. If the discount rate is 17.5 percent, what is the NPV of this project? (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45). Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, eg. 1,525.) The NPV is $
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
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Transcribed Image Text:Cullumber Corp. management is planning to spend $650,000 on a new marketing campaign. It believes that this action will result in
additional cash flows of $304,000 over the next three years. If the discount rate is 17.5 percent, what is the NPV of this project? (Enter
negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45). Do not round discount factors. Round other
intermediate calculations and final answer to O decimal places, e.g. 1,525.)
The NPV is
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