Explore BrainMass

Explore BrainMass

    Project's NPV if the discount rate is 5%

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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%?

    © BrainMass Inc. brainmass.com December 15, 2022, 4:56 pm ad1c9bdddf
    https://brainmass.com/business/finance/project-s-npv-if-the-discount-rate-is-5-53399

    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

    $2.49

    ADVERTISEMENT