Project Salerino has the following cash flows: CF0 = -100, C01 = -210, C02 = 230,...

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Project Salerino has the following cash flows: CF0 = -100, C01 = -210, C02 = 230,...

Project Salerino has the following cash flows: CF0 = -100, C01 = -210, C02 = 230, C03 = 790, C04 = -70. What is the FV of only the profits to Salerino if the cost of capital is 0.14?

-120 1,200 or 120

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Answer 1

Answer #1

Solution: FV of only the profits = $1200 Explanation: Time period for the whole project = n = 4 FV of only the profits = CO2

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Answer 2

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