Based on the following scenario, what is the NPV of ABC inc.? Expected annual growth: 10.5%, Weighted average cost of capital: 19.9%. Years of cash flow to include: 25 years. Cash flow from operations: $850,000 in total, Cash flow from investing: -$14,750 in total   The business NPV is valued at $10,370,130.   The business NPV is valued at $7,474,184.   The business NPV is valued at $8,818,948.   The business NPV is valued at $9,270,043.

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter27: Investment, The Capital Market, And The Wealth Of Nations
Section: Chapter Questions
Problem 9CQ
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Based on the following scenario, what is the NPV of ABC inc.? Expected annual growth: 10.5%, Weighted average cost of capital: 19.9%. Years of cash flow to include: 25 years. Cash flow from operations: $850,000 in total, Cash flow from investing: -$14,750 in total

  The business NPV is valued at $10,370,130.
  The business NPV is valued at $7,474,184.
  The business NPV is valued at $8,818,948.
  The business NPV is valued at $9,270,043.
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