A project costs $150,000 and generates a cash flow of $75,000 in year 1, $25,000 in year 2, and then 10,000 in years 3 through 10. What is the NPV of the project if the WACC is 8%
Added by Yolanda H.
Step 1
- Initial investment (Year 0): -$150,000 - Cash flow in Year 1: $75,000 - Cash flow in Year 2: $25,000 - Cash flow in Years 3 to 10: $10,000 each year - Discount rate (WACC): 8% or 0.08 Show more…
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