Question

In: Finance

Determine the net present value for a project that costs $229,000 and would yield after-tax cash...

Determine the net present value for a project that costs $229,000 and would yield after-tax cash flows of $21,000 per year for the first 14 years, $29,000 per year for the next 18 years, and $42,000 per year for the following 12 years. Your firm's cost of capital is 10.00%.

Question 16 options:

$2,488.65

$1,345.00

$1,588.16

$1,885.34

$2,714.89

Solutions

Expert Solution

Ans $1,885.34

the net present value for a project that costs $229,000 and would yield after-tax cash flows of $21,000 per year for the first 14 years, $29,000 per year for the next 18 years, and $42,000 per year for the following 12 years. Your firm's cost of capital is 10.00% is $1,885.34


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