Calculate the total project cash flows for the project

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Reference no: EM132992166

Problem - You have a chance to invest in a shopping center. The total investment for the purchase of the land and construction of the center is $10,000,000 today. You have calculated the yearly net after-tax cash flows from operations as follows:

Year 1: $1,500,000

Year 2: 2,000,000

Year 3: 2,250,000

Year 4: 2,500,000

Year 5: 2,750,000

At the end of year 5, you will sell the shopping center for $18,000,000 after taxes.

Required -

A. Calculate the present value of all the operating after-tax cash flows assuming you require a 20% R.O.I.

B. Calculate the total project cash flows for the project?

Reference no: EM132992166

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