WACC = | 8% | |
Period | Project 1 | Project 2 |
0 | -$200 | -$75 |
1 | $100 | $100 |
2 | $75 | $25 |
3 | $80 | |
4 | ||
5 | ||
6 |
Based on the information in the table, what is the replacement chain NPV for Project 1?
$20.40 |
$40.80 |
$43.91 |
$36.59 |
A | ||||
Period | Project 1 | |||
1 | 0 | -200 | ||
2 | 1 | 100 | ||
3 | 2 | 75 | ||
4 | 3 | -120 | (Cash flow -200) | |
5 | 4 | 100 | ||
6 | 5 | 75 | ||
7 | 6 | 80 | ||
NPV | $36.59 | NPV(.08,A2:A7)+A1 |
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WACC = 8% Period Project 1 Project 2 0 -$200 -$75 1 $100 $100 2 $75...
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