Cash flow estimates and quoted in nominal dollars

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Your firm is considering a new project. The firm is 100% equity financed, and you believe the project will have about the same level of risk as the firm. You know that your firm has a beta of 1.4, the risk-free rate is 2.4 percent, and you expect the market return to be 10.0 percent. You have the following cash flow estimates, quoted in nominal dollars.

Year Nominal Dollars

0 $(35,000.00)

1 $12,500.00

2 $15,000.00

3 $17,000.00

What is the NPV of the project?

Reference no: EM131459155

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