Tampa Tech is considering the following project. The estimated cost of the project in the current year is $889,000. The
Posted: Thu May 19, 2022 12:02 am
Tampa Tech is considering the following project. The
estimated cost of the project in the current year is $889,000. The
project is expected to generate cash flows in the amount of
$353,000 in the first and second year, followed by $1,300,000 in
year 3 through year 5. No cash flow is expected after year 5. The
company uses a discount rate of 8.2% for similar projects.
Calculate the NPV of this
project.
estimated cost of the project in the current year is $889,000. The
project is expected to generate cash flows in the amount of
$353,000 in the first and second year, followed by $1,300,000 in
year 3 through year 5. No cash flow is expected after year 5. The
company uses a discount rate of 8.2% for similar projects.
Calculate the NPV of this
project.