Consider a project where the timing and size of the


Domestic APV

Consider a project where the timing and size of the incremental after-tax cash flows for an all-equity firm are:

Year 0: –$1,000

Year 1:    $125  

Year 2:    $250

Year 3:    $375

Year 4:    $500

The unlevered cost of equity is r0 = 10%:

Calculate NPV by hand

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Financial Management: Consider a project where the timing and size of the
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