NPV Calculate the net present value (NPV) for the following 15-year projects. Comment on the acceptability of each. Assume that the firm has a cost of capital of 9%. A. Initial investment is $1,000,000; cash inflows are $150,000 per year. B. Initial investment is $2,500,000; cash inflows are $320,000 per year. C. Initial investment is $3,000,000; cash inflows are $365,000 per year.
NPV Calculate the net present value (NPV) for the following 15-year projects. Comment on the acceptability of each. Assume that the firm has a cost of capital of 9%. A. Initial investment is $1,000,000; cash inflows are $150,000 per year. B. Initial investment is $2,500,000; cash inflows are $320,000 per year. C. Initial investment is $3,000,000; cash inflows are $365,000 per year.
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 1P
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NPV Calculate the
A. Initial investment is $1,000,000;
B. Initial investment is $2,500,000; cash inflows are $320,000 per year.
C. Initial investment is $3,000,000; cash inflows are $365,000 per year.
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