Npv and eva a project costs 25 million up front and will


NPV and EVA A project costs $2.5 million up front and will generate cash flows in perpetuity of $240,000. The firm's cost of capital is 9%.

a. Calculate the project's NPV.

b. Calculate the annual EVA in a typical year.

c. Calculate the overall project EVA and compare to your answer in part a.

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Finance Basics: Npv and eva a project costs 25 million up front and will
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