A project has annual cash flows of $6,500 for the next 10 years and then $10,500...

A project has annual cash flows of $6,500 for the next 10 years and then $10,500 each year for the following 10 years. The IRR of this 20-year project is 13.41%. If the firm's WACC is 10%, what is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent.

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Expert Solution

IRR is the discount rate in which project NPV is zero. In this question we will use IRR to find out initial investment and then using WACC we will find out NPV.

Below are the values:

Hence NPV is $14,188.53

Thanks

jeff jeffy answered 2 years ago

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