Project a will not produce any cash flows for two years


Project A will not produce any cash flows for two years. Starting in the third year, it will produce annual cash flows of $12,000 a year for three years. The project initially costs $56,000. In Year 6, the project will be closed and as a result should produce a final cash inflow of $45,000. What is the net present value of this project if the required rate of return is 8.0 percent?

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Financial Management: Project a will not produce any cash flows for two years
Reference No:- TGS02142995

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