Question

The Horizon Company will invest $60,000 in a temporary project that will generate the following cash...

The Horizon Company will invest $60,000 in a temporary project that will generate the following cash inflows for the next three years. Cost of capital is 12%. Calculate NPV of the project.

Year                                                                       Cash Flow

1 .....................                                                  $30,000

2 .....................                                                  30,000

3 .....................                                                  30,000

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Answer #1

Answer: NPV = $12,055

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