FIN 3715 : Finance Exam 3
Document Summary
The project will cost ,000 today and is. The project will cost ,000 today and is. Capital budgeting rules expected to generate the following end of year cash flows. ,000 ,000 ,000 expected to generate the following end of year cash flows. ,000 ,000 ,000 expected to generate the following end of year cash flows. ,000 ,000 ,000: the kessler corporation is deciding whether to invest in a new project that has the following characteristics: the initial cost of the project is ,000,000. In the project"s first 10 years it will generate ,000 in cash flows per year. Starting in year 11 the project will generate ,000 in cash flow and this figure will remain the same each year thereafter in perpetuity. Assuming a discount rate of 10%, calculate the npv of this project and explain whether the kessler. A firm is considering investing in a new project.
