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A project brings the following cash flow to the company The company uses its WACC weighted-average cost of capital as discount rates at 12% Years Start CF Growth Rate

A project brings the following cash flow to the company. The company uses its WACC (weighted-average cost of capital) as discount rates at 12%.

Years Start CF Growth Rate
1-3 $100,000 2%
4-6 $200,000 8%
7- 10 $80,000 1%

Omit "$" and "," in your answer. Write ONLY numbers. Round to 2 decimal places in all answers submitted.

(1) What is the present value of cash flows from Year 1 to 3?

(2) What is the present value of cash flows from year 4 to 6? (Hint: Discount back to PRESENT, not year 4)

(3) What is the present value of cash flows from year 7 to 10?

(4) What is the PV of this project?

 

May 21 2020 View more View Less

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