(NPV with varying required rates of return) Gubanich Sportswear is considering building a new factory to produce alumin
Posted: Fri Jul 01, 2022 7:51 am
(NPV
with varying required rates of
return)
Gubanich Sportswear is considering building a new factory toproduce aluminum baseball bats. This project would require aninitial cash outlay of
$6,000,000
and would generate annual free cash inflows of
$1,100,000
per year for
8
years. Calculate the project's NPV given:
a. A required rate of return of
9
percent?
b. A required rate of return of
11
percent?
c. A required rate of return of
15
percent?
d. A required rate of return of
17
percent?
with varying required rates of
return)
Gubanich Sportswear is considering building a new factory toproduce aluminum baseball bats. This project would require aninitial cash outlay of
$6,000,000
and would generate annual free cash inflows of
$1,100,000
per year for
8
years. Calculate the project's NPV given:
a. A required rate of return of
9
percent?
b. A required rate of return of
11
percent?
c. A required rate of return of
15
percent?
d. A required rate of return of
17
percent?