6. New Flyer Industries has decided to expand its production of hybrid transit buses. The firm expects incremental cash flows of $8 million per year for the next 8 years. The upfront cost of the expansion is $28 million, and there are additional flotation costs of $1.5 million. If the New Flyer's WACC is 10%, what is the overall NPV of the project? A) $34,500,000 B) $14,679,410 C) $36,000,000 D) $50,500,000 E) $13,179,410
6. New Flyer Industries has decided to expand its production of hybrid transit buses. The firm expects incremental cash flows of $8 million per year for the next 8 years. The upfront cost of the expansion is $28 million, and there are additional flotation costs of $1.5 million. If the New Flyer's WACC is 10%, what is the overall NPV of the project? A) $34,500,000 B) $14,679,410 C) $36,000,000 D) $50,500,000 E) $13,179,410
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 16P: Shao Airlines is considering the purchase of two alternative planes. Plane A has an expected life of...
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the answer A)is 34,500,000. please explain how to get this answer without the use of excel
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