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3. You have been asked to review a capital investment proposal. The cost of the project is $2,775,000. Cash receipts are
Posted: Thu May 19, 2022 6:42 am
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- 3 You Have Been Asked To Review A Capital Investment Proposal The Cost Of The Project Is 2 775 000 Cash Receipts Are 1 (14.94 KiB) Viewed 31 times
3. You have been asked to review a capital investment proposal. The cost of the project is $2,775,000. Cash receipts are projected to be $925,000 in year 1: $1,000,000 in year 2; $1,000,000 in year 3; $1,000,000 in year 4; and $1,225,000 in year 5. Suppose your
company discounts capital projects at 13.5%. What is the NPV of the project? (7 points)