A project requires an investment of $15,000 today and it is expected to generate free cash flows of $5,000 per year for the next four years. The company's weighted average cost of capital is 10.1% per year. What is the project's equivalent annual annuity? 1) $282.3 2) $233.7 3) $269.2 4) $257.7 5) $207.4
A project requires an investment of $15,000 today and it is expected to generate free cash flows of $5,000 per year for the next four years. The company's weighted average cost of capital is 10.1% per year. What is the project's equivalent annual annuity? 1) $282.3 2) $233.7 3) $269.2 4) $257.7 5) $207.4
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 28P
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