The company expects the project to generate annual cash


A manufacturing company is purchasing a production facility at a cost of $8.9 million. The company expects the project to generate annual cash flows of $4.8 million over the next 4 years. Its cost of capital is 9.3 percent. What is the net present value of this project? (in millions dollars to three decimals)

a. $6.549

b. $3.186

c. $9.626

d. $75.800

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Finance Basics: The company expects the project to generate annual cash
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