Question

A company is in the process of constructing a new plant at a cost of $15...

A company is in the process of constructing a new plant at a cost of $15 million. It expects the project to generate cash flows of $9 million, $6 million, and $9 million over the next three years. The cost of capital is 13.2 percent p.a. What is the net present value of this project? (in millions to three decimals)

Select one:

a. $3.837

b. $33.837

c. $1.641

d. $4.455

Homework Answers

Answer #1

Ans is a.$ 3.837

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