FINANCIAL 3301- Dowling Sportswear is considering building a new factory
Question # 00463618
Posted By:
Updated on: 01/16/2017 01:29 AM Due on: 01/16/2017
(Net present value calculation) Dowling 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 net cash inflows of $900,000 per year for 7 years. Calculate the project's NPV using a discount rate of 5 percent. (Round to the nearest dollar.)
a. If the discount rate is 5 percent, then the project's NPV is: | $ |
-
Rating:
/5
Solution: FINANCIAL 3301- Dowling Sportswear is considering building a new factory