Television is considering a project with an initial outlay of $X (you will have to determine this an s expected that the project will produce a positive cash flow of $54,000 a year at the end of ea For the next 13 years. The appropriate discount rate for this project is 8 percent. If the project Internal rate of return of 13 percent, what is the project's net present value? ***

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter14: Real Options
Section: Chapter Questions
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Television is considering a project with an initial outlay of $X (you will have to determine this amount). It
is expected that the project will produce a positive cash flow of $54,000 a year at the end of each year
for the next 13 years. The appropriate discount rate for this project is 8 percent. If the project has an
internal rate of return of 13 percent, what is the project's net present value?
***
a. If the project has an internal rate of return of 13%, then the project's initial outlay is $
the nearest cent.)
(Round to
Transcribed Image Text:Television is considering a project with an initial outlay of $X (you will have to determine this amount). It is expected that the project will produce a positive cash flow of $54,000 a year at the end of each year for the next 13 years. The appropriate discount rate for this project is 8 percent. If the project has an internal rate of return of 13 percent, what is the project's net present value? *** a. If the project has an internal rate of return of 13%, then the project's initial outlay is $ the nearest cent.) (Round to
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