esla is planning to produce an all-electric family car and expects the following cash flows (in $ million) at the end of each year: Year Cash flow 0 -50 1 -110 2 20 3 40 4 80 5 80 The company requires a return of 13% from this project. 1. What is the NPV (in $ million)? 2. What is the project's profitability index?
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Tesla is planning to produce an all-electric family car and expects the following cash flows (in $ million) at the end of each year:
Year | Cash flow |
0 | -50 |
1 | -110 |
2 | 20 |
3 | 40 |
4 | 80 |
5 | 80 |
The company requires a return of 13% from this project.
1. What is the NPV (in $ million)?
2. What is the project's profitability index?
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