XYZ is considering a 3-yr project. The initial outlay is $120,000, annual cash flow is $50,000...

XYZ is considering a 3-yr project. The initial outlay is $120,000, annual cash flow is $50,000 and the terminal cash flow is $10,000. The required rate of return (cost of capital) is 15%. The net present value is $736.42. What if the required rate of return is 9% instead? Re-calculate the NPV.

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ANSWER

NPV =

14286.57

jeff jeffy answered 3 weeks ago

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