NPV and EVA   A project cost ​$2.8 million up front and will generate cash flows in perpetuity of ​$280,000. The​ firm's cost of capital is 9​%. a.  Calculate the​ project's NPV. b.  Calculate the annual EVA in a typical year. c.  Calculate the overall project EVA.

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Chapter9: Capital Budgeting Techniques
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NPV and EVA   A project cost
​$2.8
million up front and will generate cash flows in perpetuity of
​$280,000.
The​ firm's cost of capital is
9​%.
 
a.  Calculate the​ project's NPV.
b.  Calculate the annual EVA in a typical year.
c.  Calculate the overall project EVA.
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