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In: Finance

A project has annual cash flows of $8,000 for the next 10 years and then $12,000...

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

Solutions

Expert Solution

Answer: b. $5,584.49


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