Your firm is considering a project that requires in investment of $156,000 today. It is projected to pay $47,000 at the end of the year and at the end of the next two years after that (i.e., the cash flows at t = 1, 2, and 3 are all $47,000). Four years from today, the project is projected to pay $76, 000. If the appropriate discount rate to value this project is 12% per year, what is the NPV? Round and express your answer to the nearest whole dollar (1.e., nearest integer).

Your firm is considering a project that requires in investment of $156,000 today. It is projected to pay $47,000 at the end of the year and at the end of the next two years after that (i.e., the cash flows at t = 1, 2, and 3 are all $47,000). Four years from today, the project is projected to pay $76, 000. If the appropriate discount rate to value this project is 12% per year, what is the NPV? Round and express your answer to the nearest whole dollar (1.e., nearest integer).

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Description: Your firm is considering a project that requires in investment of $156,000 today. It is projected to pay $47,000 at the end of the year and at the end of the next two yearsafter that (i.e., the cash flows at t = 1, 2, and 3 are all $47,000). Four ye

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter11: Capital Budgeting And Risk

Section: Chapter Questions

Problem 20P

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