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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 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
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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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
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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