Question: Wagner PLC is considering a project which will generate cash flows of $5,000 each year from years 3 to 7. The company has a cost of capital of 14%. What is the total present value of the cash flows?

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter21: Dynamic Capital Structures And Corporate Valuation
Section: Chapter Questions
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Question:
Wagner PLC is considering a
project which will generate cash
flows of $5,000 each year from
years 3 to 7. The company has a
cost of capital of 14%.
What is the total present value of
the cash flows?
Transcribed Image Text:Question: Wagner PLC is considering a project which will generate cash flows of $5,000 each year from years 3 to 7. The company has a cost of capital of 14%. What is the total present value of the cash flows?
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