Suppose Pheasant Pharmaceuticals is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $3,225,000. The project is expected to generate the following net cash flows: Year Cash Flow Year 1 $375,000 Year 2 $425,000 Year 3 $500,000 Year 4 $400,000 If Pheasant Pharmaceutical's weighted average cost of capital is 8%, what is the NPV for this project? Group of answer choices -$2,186,977 -$5,047,481 -$1,822,481 -$1,422,481
Suppose Pheasant Pharmaceuticals is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $3,225,000. The project is expected to generate the following net cash flows: Year Cash Flow Year 1 $375,000 Year 2 $425,000 Year 3 $500,000 Year 4 $400,000 If Pheasant Pharmaceutical's weighted average cost of capital is 8%, what is the NPV for this project? Group of answer choices -$2,186,977 -$5,047,481 -$1,822,481 -$1,422,481
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...
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Question
Suppose Pheasant Pharmaceuticals is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $3,225,000. The project is expected to generate the following net cash flows:
Year | Cash Flow |
Year 1 | $375,000 |
Year 2 | $425,000 |
Year 3 | $500,000 |
Year 4 | $400,000 |
If Pheasant Pharmaceutical's weighted average cost of capital is 8%, what is the NPV for this project?
Group of answer choices
-$2,186,977
-$5,047,481
-$1,822,481
-$1,422,481
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