An investment under consideration has a payback of eight years and a cost of $868,000. Assume...

An investment under consideration has a payback of eight years and a cost of $868,000. Assume the cash flows are conventional.

If the required return is 10 percent, what is the worst-case NPV?

Expert Solution

NPV = -Initial cost + Present value of cash flows

NPV = -$868,000 + $868,000/1.10^8

NPV = -$463,071.59

jeff jeffy answered 3 years ago

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