Iceland inc is considering a project with an initial cost, Ask an Expert

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Iceland Inc. is considering a project with an initial cost of $1 million.

The project will not produce any cash flows for the first two years. Starting in year 3, the project will produce cash inflows of $625,000 a year for four years.

This project is risky, so the firm has assigned it a discount rate of 22 percent. What is the net present value?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92763680

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