A magazine publisher wants to launch a new magazine geared to college students. The project's initial...

60.1K

Verified Solution

Question

Finance

A magazine publisher wants to launch a new magazine geared tocollege students. The project's initial investment is $65. Theproject's cash flows that come in at the end of each year are $23for 5 consecutive years beginning one year from today. What is theproject's NPV if the required rate of return is 15%?
$_____
Place your answer in dollars and cents without the use of adollar sign or comma. If applicable, a negative answer should havea "minus" sign in front of the number.
Work your analysis out to at least 4 decimal places ofaccuracy.
Based upon the NPV decision rule, should the company accept orreject the project?
Answer #2:(Yes or No) Place your aswer as the word "yes" or theword "no".

Answer & Explanation Solved by verified expert

4.1 Ratings (813 Votes)

Solution The Projects NPV if the required rate of return is 15is 120996 at 4 decimal places of accuracy Answer in dollars and See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

A magazine publisher wants to launch a new magazine geared tocollege students. The project's initial investment is $65. Theproject's cash flows that come in at the end of each year are $23for 5 consecutive years beginning one year from today. What is theproject's NPV if the required rate of return is 15%?$_____Place your answer in dollars and cents without the use of adollar sign or comma. If applicable, a negative answer should havea "minus" sign in front of the number.Work your analysis out to at least 4 decimal places ofaccuracy.Based upon the NPV decision rule, should the company accept orreject the project?Answer #2:(Yes or No) Place your aswer as the word "yes" or theword "no".