Ivanhoe, Inc., is considering a five-year project with an initial investment of $38,000. What annual free...
Ivanhoe, Inc., is considering a five-year project with an initial investment of $38,000. What annual free cash flow (FCF) would be required for this project to have an NPV of $0 if the opportunity cost capital is 14 percent? (Round answer to 2 decimal places, e.g. 5,275.25.) Annual free cash flow
Homework Answers
We see that the annual free cash flow required will be given as ewual to=38000*14%/(1-1/1.14^5)=11068.77
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Ivanhoe, Inc., is considering a five-year project with an
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