What does the 20 discount rate suggest about the project


1. What is the discounted free cash in year 5 of a project that has an annual free cash of ~100 million and a discount rate of 20%?

2. If the capital cost of the project is expected to be 1 billion dollars with a construction schedule of 2 years do you expect this project above (100 million non discounted free cash per year) to be economic at a 20% discount rate

3. What does the 20% discount rate suggest about the project risk?

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Financial Management: What does the 20 discount rate suggest about the project
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