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IgorLugansk [536]
1 year ago
7

jazz world inc. is considering a project that has the following cash flow and wacc data. what is the project's npv? note that a

project's projected npv can be negative, in which case it will be rejected. wacc: 9.75% year 0 1 2 3 4 cash flows -$1,200 $400 $425 $450 $475 group of answer choices 222.13 185.11 157.34 174.00 198.07
Business
1 answer:
Marianna [84]1 year ago
8 0

The project's projected NPV is $185.11. (second option)

<h3>What is the NPV?</h3>

Net present value is the present value of after-tax cash flows from an investment less the amount invested. Only projects with a positive NPV should be accepted.

A project with a negative NPV should not be chosen because it isn't profitable. NPV is calculated by taking the present value of all cash flows over the life of a project. Then, the present value of cash flows is subtracted from the investment's initial investment

NPV = -1200 + 400 / 1.0975 + 425 / 1.0975² + 450 / 1.0975³ + 475 / 1.0975^4

= $185.11

To learn more about net present value, please check: brainly.com/question/25748668

#SPJ1

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