NPV with Varying Required Rates of Return Assignment | Homework For You
June 3rd, 2020
DC (NPV with varying required rates of return) Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $4,000,000 and would generate annual free cash inflows of $1,000,000 per year for 6 years. Calculate the project’s NPV given:
a. A required rate of return of 8 percent
b. A required rate of return of 11 percent
c. A required rate of return of 13 percent
d. A required rate of return of 16 percent
a. If the required rate of return is 8 percent, the project’s NPV is $ (Round to the nearest dollar.) This Ten Enter your answer in the answer box and then click Check Answer 2 parts S remaining Check Answer. Get Finance homework help today
