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Project to generate cash flows

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Reference no: EM131428919

Turnbull Corp. is in the process of constructing a new plant at a cost of $30 million. It expects the project to generate cash flows of $13,000,000, $23,000,000, and 29,000,000 over the next three years. The cost of capital is 20 percent. What is the net present value of this project? (Do not round intermediate computations. Round final answer to nearest million dollars.)

  • $16 million
  • $10 million
  • $12 million
  • $14 million

Reference no: EM131428919

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