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A project has annual cash flows of $3,000 for the next 10 years and then $6,500...

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Finance

A project has annual cash flows of $3,000 for the next 10 yearsand then $6,500 each year for the following 10 years. The IRR ofthis 20-year project is 13.95%. If the firm's WACC is 12%, what isthe project's NPV? Round your answer to the nearest cent.

Thanks!!!

Answer & Explanation Solved by verified expert
4.1 Ratings (802 Votes)
Projects NPV is 248151 Working Step1Calculation of initial cost of project IRR is the rate at which present value of cash inflows become equal to initial cost So initial cost is the present value of cash inflows at IRR rate Present Value of annuity of 1 11ini    See Answer
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Transcribed Image Text

A project has annual cash flows of $3,000 for the next 10 yearsand then $6,500 each year for the following 10 years. The IRR ofthis 20-year project is 13.95%. If the firm's WACC is 12%, what isthe project's NPV? Round your answer to the nearest cent.Thanks!!!

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