Question 5 Assume that in questions 1, 2, and 3 you calculated the following cash flows for ABC Corp (Note that these are not the answers to questions 1-3): 0 1 2 3 4 $ $ $ OCF $ 16,050.00 19,872.71 18,526.53 18,295 Change $ $ $ $ $ in (900.00) (27.00) (27.81) (28.64) (29.50) NWC Cap Ex $(100,000.00) What is the NPV of the project if the discount rate is 12%? $(10,420.39) $5,556.79 ○ ($11,670.84) O $(41,403.46)
Question 5 Assume that in questions 1, 2, and 3 you calculated the following cash flows for ABC Corp (Note that these are not the answers to questions 1-3): 0 1 2 3 4 $ $ $ OCF $ 16,050.00 19,872.71 18,526.53 18,295 Change $ $ $ $ $ in (900.00) (27.00) (27.81) (28.64) (29.50) NWC Cap Ex $(100,000.00) What is the NPV of the project if the discount rate is 12%? $(10,420.39) $5,556.79 ○ ($11,670.84) O $(41,403.46)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![Question 5
Assume that in questions 1, 2, and 3 you calculated the
following cash flows for ABC Corp (Note that these are not the
answers to questions 1-3):
0
1
2
3
4
$
$
$
OCF
$
16,050.00 19,872.71 18,526.53 18,295
Change
$
$
$
$
$
in
(900.00)
(27.00)
(27.81)
(28.64)
(29.50)
NWC
Cap Ex $(100,000.00)
What is the NPV of the project if the discount rate is 12%?
$(10,420.39)
$5,556.79
○ ($11,670.84)
O $(41,403.46)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14b146e2-4ecf-4bbe-ba67-deb5db06ee5e%2F601477ce-e3e6-47e4-8a5c-3471899ceed0%2Fx98ybx_processed.png&w=3840&q=75)
Transcribed Image Text:Question 5
Assume that in questions 1, 2, and 3 you calculated the
following cash flows for ABC Corp (Note that these are not the
answers to questions 1-3):
0
1
2
3
4
$
$
$
OCF
$
16,050.00 19,872.71 18,526.53 18,295
Change
$
$
$
$
$
in
(900.00)
(27.00)
(27.81)
(28.64)
(29.50)
NWC
Cap Ex $(100,000.00)
What is the NPV of the project if the discount rate is 12%?
$(10,420.39)
$5,556.79
○ ($11,670.84)
O $(41,403.46)
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Foundations Of Finance](https://www.bartleby.com/isbn_cover_images/9780134897264/9780134897264_smallCoverImage.gif)
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
![Fundamentals of Financial Management (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337395250/9781337395250_smallCoverImage.gif)
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
![Corporate Finance (The Mcgraw-hill/Irwin Series i…](https://www.bartleby.com/isbn_cover_images/9780077861759/9780077861759_smallCoverImage.gif)
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education