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Google is considering building a new data center. The project will require an initial cash outlay of $ 10,000,000 and will generate annual net cash inflows of $ 2,500,000 per year for five years. Calculate the project's NPV assuming a discount rate of 7% a. $ 250,000 b. $ 200,494 c. $ 250,494 d. $ 494,250

Google is considering building a new data center. The project will require an initial cash outlay of $ 10,000,000 and will generate annual net cash inflows of $ 2,500,000 per year for five years. Calculate the project's NPV assuming a discount rate of 7% a. $ 250,000 b. $ 200,494 c. $ 250,494 d. $ 494,250

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 15EB: Project X costs $10,000 and will generate annual net cash inflows of $4,800 for five years. What is...
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Google is considering building a new data center. The project will require an initial cash outlay of $ 10,000,000 and will generate annual net cash inflows of $ 2,500,000 per year for five years. Calculate the project's NPV assuming a discount rate of 7%

a. $ 250,000

b. $ 200,494

c. $ 250,494

d. $ 494,250

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