Company is considering a project. The NPV of this project is ＄ (2.2m).In order to develop its Asian market, B company decides to use 7 years’ time to do some research and improve its technology. The cost of investment at year 7 is ＄ 20m.The NPV of this pro
举一反三
- A company is considering entering into a joint venture that will require an investment of $30 million. The project is expected to generate cash flows of $7 million, $14 million, and $15 million in each of the next three years, respectively. Assuming a discount rate of 7%, what is the project"s NPV A: -$5343200 B: -$3702900 C: +$1563400
- Do some research on the hiring company and its industry before the interview.
- Initial Investment Cash flowProject A $35 million $14 million per year for four yearsProject B $21 million $7 million per year for five years Project C $14 million $7 million per year for four years Project D $21 million $10.5 million per year for three years An investor has a budget of $35 million. He can invest in the projects shown above. If the cost of capital is 8%, what investment or investments should he make? A: Project A B: Project B C: Project B and Project C D: Project C and Project D
- Do some research about the company ahead of time
- The merger was expected to help the combined company to A: reduce its costs. B: improve its public image. C: compete with the market leaders.