Suppose Extensive Enterprises's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; however, she does know that the project's regular payback period is 2.5 years. Year Cash Flow Year 1 Year 2 Year 3 Year 4 $300,000 $475,000 $500,000 $500,000 If the project's weighted average cost of capital (WACC) is 9%, what is its NPV? O $390,332 O $409,849 O $429,365 O $312,266
Suppose Extensive Enterprises's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; however, she does know that the project's regular payback period is 2.5 years. Year Cash Flow Year 1 Year 2 Year 3 Year 4 $300,000 $475,000 $500,000 $500,000 If the project's weighted average cost of capital (WACC) is 9%, what is its NPV? O $390,332 O $409,849 O $429,365 O $312,266
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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![Suppose Extensive Enterprises's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; however, she
does know that the project's regular payback period is 2.5 years.
Year
Year 1
Year 2
Year 3
Year 4
Cash Flow
$300,000
$475,000
$500,000
$500,000
If the project's weighted average cost of capital (WACC) is 9%, what is its NPV?
O $390,332
O $409,849
O $429,365
O $312,266](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F07d835a1-da66-4018-a69c-0261e31e3210%2F5f505d59-327b-47c9-9b7c-207638406998%2Fles714_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose Extensive Enterprises's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; however, she
does know that the project's regular payback period is 2.5 years.
Year
Year 1
Year 2
Year 3
Year 4
Cash Flow
$300,000
$475,000
$500,000
$500,000
If the project's weighted average cost of capital (WACC) is 9%, what is its NPV?
O $390,332
O $409,849
O $429,365
O $312,266
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