Your project has the following projected positive operating cash flows (all occurring at the end of the year noted):$1,000$2,000$3,000$4,000$5,000If you decide to sell the project on the first day of the fifth year, what is the present value of the relevant cash flows (assuming a 10% WACC and a 4% Treasury Rate)?

given information wacc = 10% treasury rate = 4% project positive cash flow are $1,000 $2,000…

Answered: Your project has the following…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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Your project has the following projected positive operating cash flows (all occurring at the end of the year noted):

$1,000
$2,000
$3,000
$4,000
$5,000

If you decide to sell the project on the first day of the fifth year, what is the present value of the relevant cash flows (assuming a 10% WACC and a 4% Treasury Rate)?

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