Turnbull Company Is in the Process of Constructing a New

question 9

Multiple Choice

Turnbull Company is in the process of constructing a new plant at a cost of $30 million. It expects the project to generate cash flows of $13,000,000, $23,000,000, and 29,000,000 over the next three years. The cost of capital is 20 percent. Net present value: What is the net present value of this project? (Round to the nearest million dollars.)

• A) $10 million
• B) $12 million
• C) $14 million
• D) $16 million

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