Project NAG generates positive cash flows of $60,000 per year at the end of each of the next five years. The project's NPV is $75,000, and WACC is 10%. What’s project NAG’s cost? What’s project NAG’s regular payback?

Project NAG generates positive cash flows of $60,000 per year at the end of each of the next five years. The project's NPV is $75,000, and WACC is 10%. What’s project NAG’s cost? What’s project NAG’s regular payback?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...

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Question

Project NAG generates positive cash flows of $60,000 per year at the end of each of the next five years. The project's NPV is $75,000, and WACC is 10%. What’s project NAG’s cost?

What’s project NAG’s regular payback?

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