Principles of Managerial Finance
Principles of Managerial Finance
17th Edition
ISBN: 9781323419656
Author: Gitman
Publisher: PEARSON
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Chapter 10, Problem 10.13P

NPV and EVA A project costs $2,500,000 up front and will generate cash flows in perpetuity of $240,000. The firm's cost of capital is 9%.

  1. a. Calculate the project's NPV
  2. b. Calculate the annual EVA in a typical year.
  3. c. Calculate the overall project EVA and compare to your answer in part a.
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Principles of Managerial Finance

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Capital Budgeting Introduction & Calculations Step-by-Step -PV, FV, NPV, IRR, Payback, Simple R of R; Author: Accounting Step by Step;https://www.youtube.com/watch?v=hyBw-NnAkHY;License: Standard Youtube License