A project costs $360,000 initially and will generate project cash flows of $50,000 every year for 8 years. The required return for the project is 9%. What is the NPV of the project (in $)? p+ decimals Submit

A project costs $360,000 initially and will generate project cash flows of $50,000 every year for 8 years. The required return for the project is 9%. What is the NPV of the project (in $)? p+ decimals Submit

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

A project costs $360,000 initially and will generate project cash flows of $50,000
every year for 8 years. The required return for the project is 9%.
What is the NPV of the project (in $)?
p+ decimals
Submit

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Project L requires an initial outlay at t = 0 of $59,664, its expected cash inflows are $12,000 per year for 8 years, and its WACC is 14%. What is the project's IRR? Round your answer to two decimal places. %
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A project has an initial cost of $35,000, expected net cash inflows of $8,000 per year for 9 years, and a cost of capital of 13%. What is the project's PI? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.
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