In: Finance
A project has annual cash flows of $8,000 for the next 10 years and then $12,000 each year for the following 10 years. The IRR of the 20-year project is 11.00%. If the firm’s WACC is 10%, what is the project’s net present value (NPV)? Show work.
a. $6,788.44
b. $5,584.49
c. $5,977.45
d. $7,905,50