Calculate the project net present value


Problem:

Coughlin Motors is considering a project with the following expected cash flows:

  • NINV=$700millin
  • NCF1==$200million
  • NCF2=$370million
  • NCF3=$225million
  • NCF3=$700millin

If the cost of capital is 10% and the risk free rate if interest is 5%, what is the project's payback period?

Required:

Question: Calculate the project's net present value(NPV)

Note: Show supporting computations in good form.

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Accounting Basics: Calculate the project net present value
Reference No:- TGS0885471

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