Suppose Praxis Corporations CFO is evaluating a project with the following cash inflows. She does...
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Accounting
Suppose Praxis Corporations CFO is evaluating a project with the following cash inflows. She does not know the projects initial cost; however, she does know that the projects regular payback period is 2.5 years.
| Year | Cash Flow |
|---|---|
| Year 1 | $275,000 |
| Year 2 | $500,000 |
| Year 3 | $500,000 |
| Year 4 | $400,000 |
If the projects weighted average cost of capital (WACC) is 9%, what is its NPV?
$381,114
$317,595
$301,715
$349,355
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