Question

you are an investment banker looking at purchasing a retail chain that is estimated to generate...

you are an investment banker looking at purchasing a retail chain that is estimated to generate the following cash flows

years cashflow

0 -800,000

1 -10,000

2 50,000

3 200,000

4 500,000

5 800,000

your discount rate is 8.5%

What is the NPV of this investment and should we accept or reject the proposal?

a.) 282,661,27; accept

b.) 740,000; accept

c.) 282,661.27; reject

d.) 740,000; reject

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