Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A project requires a $3 million investment in net working capital (NWC) today, and will be fully recovered in 10 years. What is the PV of the NWC cash flows if r = 0.12 per annum?
Enter answer in millions of dollars, rounded to the nearest thousandth (3rd digit), as in "1.123" million.
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- A project has an initial cost of $ 55,000, expected net cash inflows of $10,000 per year for 10 years, and a cost of capital of 9%. What is the project's NPV ? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to the nearest cent.arrow_forwardCash flows from a new project are expected to be $5,000, $8,000, $14,000, $22,000, $24,000, and $32,000 over the next 6 years, respectively. Assuming qn initial cost of $60,000, and a discount rate of 16%, what is the project's IRR?arrow_forwardA project has annual cash flows of $3,500 for the next 10 years and then $11,000 each year for the following 10 years. The IRR of this 20-year project is 12.93%. If the firm's WACC is 11%, what is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $ ___arrow_forward
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