rgalactic has a new project available on Arrakis. The cost of the proje $42,000 and it will provide cash flows of $24,600, $31,300, and $32,600 over each the next three years, respectively. Any cash earned in Arrakis is "blocked" and must reinvested in the country for one year at an interest of 2.3 percent. The project has required return of 9.7 percent. What is the project's NPV? Multiple Choice O $52,921.24 $26,195.58

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Maud'Dib Intergalactic has a new project available on Arrakis. The cost of the project is
$42,000 and it will provide cash flows of $24,600, $31,300, and $32,600 over each of
the next three years, respectively. Any cash earned in Arrakis is "blocked" and must be
reinvested in the country for one year at an interest of 2.3 percent. The project has a
required return of 9.7 percent. What is the project's NPV?
Multiple Choice
O
$52,921.24
$26,195.58
$31,128.60
$42,405.55.
$48,511.13
Transcribed Image Text:Maud'Dib Intergalactic has a new project available on Arrakis. The cost of the project is $42,000 and it will provide cash flows of $24,600, $31,300, and $32,600 over each of the next three years, respectively. Any cash earned in Arrakis is "blocked" and must be reinvested in the country for one year at an interest of 2.3 percent. The project has a required return of 9.7 percent. What is the project's NPV? Multiple Choice O $52,921.24 $26,195.58 $31,128.60 $42,405.55. $48,511.13
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