Project Zeta Is Expected to Produce After-Tax Cash Flows $30

question 74

Multiple Choice

Project Zeta is expected to produce after-tax cash flows $30 million in year 1,$40 million in year 2,and $50 million in year 3.If the company uses a 12% required rate of return,what is the most it can invest in this project and break even with respect to NPV?

• A)$69.03 million
• B)$94.26 million
• C)$1,11 million
• D)$120 million

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