A proposed nuclear power plant will cost 25 billion to


A proposed nuclear power plant will cost $2.5 billion to build and then will produce cash flows of $330 million a year for 15 years. After that period (in year 15), it must be decommissioned at a cost of $930 million. What is project NPV if the discount rate is 5%? What if it is 18%? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in billions rounded to 3 decimal places.)

Discount Rate          NPV                 

  5%                    $ billion

  18%                     billion

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Financial Management: A proposed nuclear power plant will cost 25 billion to
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