Share
Explore BrainMass

Project's NPV if the discount rate is 5%

NPV. A proposed nuclear power plant will cost $2.2 billion to build and then will produce cash flows of $300 million a year for 15 years. After that period (in Year 15), it must be decommissioned at a cost of $900 million. What is project NPV if the discount rate is 5%. What if it is 18%?

Solution Preview

NPV. A proposed nuclear power plant will cost $2.2 billion to build and then ...

Solution Summary

This explain the calculation of project's NPV

$2.19