Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $ 5,500,000 and would generate annual net cash inflows of $1,100,000 per year for 9 years. Calculate the project's NPV using a discount rate of 7 percent. If the discount rate is 7 percent, then the project's NPV is how much?
Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $ 5,500,000 and would generate annual net cash inflows of $1,100,000 per year for 9 years. Calculate the project's NPV using a discount rate of 7 percent. If the discount rate is 7 percent, then the project's NPV is how much?
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:Dowling Sportswear is considering building a new factory to produce
aluminum baseball bats. This project would require an initial cash outlay of $
5,500,000 and would generate annual net cash inflows of $1,100,000 per
year for 9 years. Calculate the project's NPV using a discount rate of 7
percent. If the discount rate is 7 percent, then the project's NPV is how much?
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