Calculate the npv of this project and what is the companys


Bay properties is considering starting a commercial real estate division. It has prepared the following four-year forecast of free cash flows for this division.

Year 0 Year 1 Year 2 Year 3 Year 4

-$200 $25 $25 $20 $29

Assume cash flow after year 4 will grow at 2.9%per year , forever. If the cost of capital for this division is 10%, what is continuation value in year 4 for cash flows after year 4? Calculate the NPV of this project and what is the company's decision on this project . SHOW WORK

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Financial Management: Calculate the npv of this project and what is the companys
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