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Waterfront Manufacturing Company is purchasing a production facility at a cost of $21,000,000. The firm expects the project to generate annual free cash flows of $7,000,000 over the next five years.  They also expect to sell the facility at the end of five years for an after-tax salvage value of $5,000,000.  Its cost of capital is 20 percent.  What is the net present value (NPV) of this project.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92168913

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