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mantparn mantparn
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Posts: 1904
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7 years ago
Tangshan Mining Company is considering investing in a new mining project. The firm's cost of capital is 12 percent and the project is expected to have an initial after-tax cost of $5,000,000. Furthermore, the project is expected to provide after-tax operating cash flows of $2,500,000 in year 1, $2,300,000 in year 2, $2,200,000 in year 3, and ($1,300,000) in year 4?
(a)   Calculate the project's NPV.
(b)   Calculate the project's IRR.
(c)   Should the firm make the investment?
Textbook 
Principles of Managerial Finance

Principles of Managerial Finance


Edition: 14th
Authors:
Read 1532 times
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alovelyalovely
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7 years ago
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