Assume a project costs $225,000 to implement and has annual net cash inflows of $50,000 for a period of eight years, a required rate of return of 11 percent, and an inflation rate of 3 percent. Calculate its net present value..

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter9: Capital Budgeting Techniques
Section: Chapter Questions
Problem 8PROB
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Assume a project costs $225,000 to implement and has annual net cash inflows of $50,000
for a period of eight years, a required rate of return of 11 percent, and an inflation rate of 3
percent. Calculate its net present value..
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