Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats. This project would...

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Finance

Gubanich Sportswear is considering building a new factory toproduce aluminum baseball bats. This project would require aninitial cash outlay of ?$5,000,000 and would generate annual freecash inflows of ?$1,100,000 per year for 7 years. Calculate the?project's NPV ?given
needs 7%
needs 8%
needs 13%
needs 10%
percentages need to be calculated with problem..

Answer & Explanation Solved by verified expert

4.4 Ratings (652 Votes)

1Net present value is solved using a financial calculator The steps to solve on the financial calculator Press the CF button CF0 5000000 It is entered with a negative sign since it is a cash outflow Cash flow for each year should be entered Press Enter and down arrow after inputting each cash flow After entering the last cash flow cash flow press the NPV button and enter the cost of capital Press enter after that Press the down arrow See Answer

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Gubanich Sportswear is considering building a new factory toproduce aluminum baseball bats. This project would require aninitial cash outlay of ?$5,000,000 and would generate annual freecash inflows of ?$1,100,000 per year for 7 years. Calculate the?project's NPV ?givenneeds 7%needs 8%needs 13%needs 10%percentages need to be calculated with problem..