ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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4. You have developed an innovative new project that is estimated to produce an annual revenue
stream (money in) of $15,000 per year for the next 10 years. Your current corporate cost of
Money is 4%. However, in year 5, your CFO projects that rate will rise to 6% for the remaining
five years of the project's lifespan. What is the NPV of this money in cashflow today? (we are
ignoring any money out costs)
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Transcribed Image Text:4. You have developed an innovative new project that is estimated to produce an annual revenue stream (money in) of $15,000 per year for the next 10 years. Your current corporate cost of Money is 4%. However, in year 5, your CFO projects that rate will rise to 6% for the remaining five years of the project's lifespan. What is the NPV of this money in cashflow today? (we are ignoring any money out costs)
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