Question

Consider the following project being analyzed for possible investment at ABC Corp.

Initial Cost                      –$50

Inflow Year 1                   $15

Inflow Year 2                   $15

Inflow Year 3                   $20

Inflow Year 4                   $10

Inflow Year 5                   $10

All amounts are in millions. The required return for the project is 8%.

The project’s NPV is:

(Enter your answer without a leading dollar sign out to two decimal places and in abbreviated millions. As an example, you would enter $2.42 million as 2.42.)

Answer 1