Management of TSC, Inc. is evaluating a new $79,000 investment with the following estimated cash flows: Year Cash Flow 1 $ 13,000 2 29,000 3 47,000 4 61,000 The firm’s cost of capital is 14 percent and the project will require that the firm spend $25,000 to terminate the project. Use Appendix B to answer the question. Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar. The NPV of the investment is $ . Should the firm make the investment? The firm make the investment.
Management of TSC, Inc. is evaluating a new $79,000 investment with the following estimated cash flows: Year Cash Flow 1 $ 13,000 2 29,000 3 47,000 4 61,000 The firm’s cost of capital is 14 percent and the project will require that the firm spend $25,000 to terminate the project. Use Appendix B to answer the question. Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar. The NPV of the investment is $ . Should the firm make the investment? The firm make the investment.
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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Management of TSC, Inc. is evaluating a new $79,000 investment with the following estimated cash flows:
| Year | Cash Flow | ||
| 1 | $ | 13,000 | |
| 2 | 29,000 | ||
| 3 | 47,000 | ||
| 4 | 61,000 |
The firm’s cost of capital is 14 percent and the project will require that the firm spend $25,000 to terminate the project. Use Appendix B to answer the question. Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar.
The NPV of the investment is $ .
Should the firm make the investment?
The firm make the investment.
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