What are the projects' NPVs assuming the WACC is 5%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places.

Respuesta :

Answer:

NPV of Project at 5% WACC = 7.71

Explanation:

Cash flow at year 0 = -27

Cash flow at year 1 = 13

Cash flow at year 2 = 17

Cash flow at year 3 = 8

WACC = 5%

NPV of Project A at 5% WACC = -27 + 13/ (1.05) + 17/(1.05)2 + 8/(1.05)3

NPV of Project A at 5% WACC = 7.71