EnergyCell, Inc. has a proposal from the Engineering Planning Division to invest in the design, testing, and development of the next generation of smart grids useful in the Internet of Things (loT) environment. The initial investment projection is $450370 in year 0, $173662 in year 2. and $23085 in years 11 and beyond. At i= 8% per year, calculate the infinite-life equivalent annual cost in years o through infinity of the proposal. Select one: O a. $56486 b. $52507 c. $44389 d. $54290 e. $574659

EnergyCell, Inc. has a proposal from the Engineering Planning Division to invest in the design, testing, and development of the next generation of smart grids useful in the Internet of Things (loT) environment. The initial investment projection is $450370 in year 0, $173662 in year 2. and $23085 in years 11 and beyond. At i= 8% per year, calculate the infinite-life equivalent annual cost in years o through infinity of the proposal. Select one: O a. $56486 b. $52507 c. $44389 d. $54290 e. $574659

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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4
A project has an initial cost of $75,000, expected net cash inflows of $13,000 per year for 10 years, and a cost of capital of 10%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to the nearest cent.
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