Answered: Project A costs $41400, its expected…

Project A costs $41400, its expected net cash inflows are $13400 per year for 8 years, and its WACC is 0.10. What is the projects NPV?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...

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Question

Project A costs $41400, its expected net cash inflows are $13400 per year for 8 years, and its WACC is 0.10.

What is the projects NPV?

Definition Definition Transfer of funds into a company by any third party, which may happen due to any operational, investing, and financing activities. The cash inflow includes payments made by customers or investments made by the investors into the company by purchasing its equity.

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