Music Company Is Considering Investing in a New Project

question 36

Multiple Choice

Music Company is considering investing in a new project.The project will need an initial investment of $2,400,000 and will generate $1,200,000 (after-tax) cash flows for three years.Calculate the NPV for the project if the cost of capital is 15%.

• A)$169,935
• B)$1,200,000
• C)$339,870
• D)$125,846

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