A project has the following annual incremental after-tax cash flows (OCFs) that follow an initial investment of $10 million (all numbers in millions): Year OCF 1 5 2 20 3 5 4 -22 What is the NPV of the project if the required rate of return is 18% per annum?
A project has the following annual incremental after-tax cash flows (OCFs) that follow an initial investment of $10 million (all numbers in millions): Year OCF 1 5 2 20 3 5 4 -22 What is the NPV of the project if the required rate of return is 18% per annum?
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 14P
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A project has the following annual incremental after-tax cash flows (OCFs) that follow an initial investment of $10 million (all numbers in millions):
Year | OCF |
1 | 5 |
2 | 20 |
3 | 5 |
4 | -22 |
What is the NPV of the project if the required
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