Calculate the annual eva in a typical year

Reference no: EM131133282

NPV and EVA A project costs $2.5 million up front and will generate cash flows in perpetuity of $240,000. The firm's cost of capital is 9%.

a. Calculate the project's NPV.

b. Calculate the annual EVA in a typical year.

c. Calculate the overall project EVA and compare to your answer in part a.

Reference no: EM131133282

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