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28 Sep 2019
You are the manager of a construction company with a five-yearproject that has a projected net cash flow of $25,000, $35,000,$45,000, $20,000 and $15,000. Implementation costs are $50,000. Thecompany has a required rate of return of 20%. Compute thediscounted cash flow and determine the NPV. Include yourcalculations in an appendix after the references page. Includeinformation on what projected net cash flow, discounted cash flowand NPV are, why they are useful in project selection, and, giventhe numbers, if this example project meets the companyrequirements, and why or why not.
You are the manager of a construction company with a five-yearproject that has a projected net cash flow of $25,000, $35,000,$45,000, $20,000 and $15,000. Implementation costs are $50,000. Thecompany has a required rate of return of 20%. Compute thediscounted cash flow and determine the NPV. Include yourcalculations in an appendix after the references page. Includeinformation on what projected net cash flow, discounted cash flowand NPV are, why they are useful in project selection, and, giventhe numbers, if this example project meets the companyrequirements, and why or why not.
Keith LeannonLv2
28 Sep 2019
