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What is the NPV of a project that costs $0.5 million and cash inflows $6000 /month paid annualy for ten years if the opportunity cost of capital is 6%?

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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Question

What is the NPV of a project that costs $0.5 million and cash inflows $6000 /month paid annualy for ten years if the opportunity cost of capital is 6%?

Definition Definition Transfer of funds into a company by any third party, which may happen due to any operational, investing, and financing activities. The cash inflow includes payments made by customers or investments made by the investors into the company by purchasing its equity.

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