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Problem 11-13 Economic Rents The following table shows the expected cash flows from a project. There are no cash flows beyond year 4. The cost of capital is 7% a. Calculate the project's NPV. Note: Do not round your intermediate calculations. Enter your answer in thousands rounded to nearest whole number. b. Calculate the economic rent in year 1. Note: Do not round your intermediate calculations. Enter your answer in thousands rounded to 2 decimal places. се -470 Cash flows ($000s) C2 C3 165 160 C1 152 C4 155

Problem 11-13 Economic Rents The following table shows the expected cash flows from a project. There are no cash flows beyond year 4. The cost of capital is 7% a. Calculate the project's NPV. Note: Do not round your intermediate calculations. Enter your answer in thousands rounded to nearest whole number. b. Calculate the economic rent in year 1. Note: Do not round your intermediate calculations. Enter your answer in thousands rounded to 2 decimal places. се -470 Cash flows ($000s) C2 C3 165 160 C1 152 C4 155

Essentials Of Investments
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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Problem 11-13 Economic Rents The following table shows the expected cash flows from a project. There are no cash flows beyond year 4. The cost of capital is 7%. a. Calculate the project's NPV. Note: Do not round your intermediate calculations. Enter your answer in thousands rounded to nearest whole number. b. Calculate the economic rent in year 1. Note: Do not round your intermediate calculations. Enter your answer in thousands rounded to 2 decimal places. се -470 Cash flows ($000s) C1 152 C2 165 a. Project's NPV b. Economic rent in 1 Year C3 160 C4 155 $ 69 65
Transcribed Image Text:Problem 11-13 Economic Rents The following table shows the expected cash flows from a project. There are no cash flows beyond year 4. The cost of capital is 7%. a. Calculate the project's NPV. Note: Do not round your intermediate calculations. Enter your answer in thousands rounded to nearest whole number. b. Calculate the economic rent in year 1. Note: Do not round your intermediate calculations. Enter your answer in thousands rounded to 2 decimal places. се -470 Cash flows ($000s) C1 152 C2 165 a. Project's NPV b. Economic rent in 1 Year C3 160 C4 155 $ 69 65
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