Megatechs after-tax cost of capital is 10 calculate the npv


Computing net present value. Magatech, a computer software developer, is considering a software development project that requires an initial investment of $200,000 and sub-sequent investment of $150,000 and $100,000 at the end of the first and second years. Megatech expects this project to yield annual after-tax inflows for 6 more years: $90,000 at the end of each year for the third through 8 years. Megatech's after-tax cost of capital is 10%. Calculate the NPV of this project.

Please answer and explain with excel. Please explain how I allow for the after-tax cost of capital of 10% within excel.

Solution Preview :

Prepared by a verified Expert
Business Management: Megatechs after-tax cost of capital is 10 calculate the npv
Reference No:- TGS02569851

Now Priced at $10 (50% Discount)

Recommended (99%)

Rated (4.3/5)