Question

Jackie Chang’s is considering a project with an initial cost of $231,400. the project will not...

Jackie Chang’s is considering a project with an initial cost of $231,400. the project will not produce any cash flows for the first 2 years. starting in year 3, the project will produce cash flows of $144,000 a year for 3 years. this project is risky, so the firm has assigned it a discount rate of 16.5%. what’s the projects net present value?


a. $2,335.56
b. $122,585.57

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Answer #1

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