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What is the project pv

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Question 1 - Present values - A project produces a cash flow of $432 in year 1. $137 in year 2, and $797 in year 3. If the cost of capital is 15%, what is the project's PV? If the project requires an investment of $1,200, what is its NPV?

Question 2 - Opportunity cost of capital - Which of the following statements are true? The opportunity cost of capital:

1. Equals the interest rate at which the company can borrow.

2. Depends on the risk of the cash flows to be valued.

3. Depends on the rates of return that shareholders can expect to earn by investing on their own.

4. Equals zero if the firm has excess cash in its bank account and the bank account pays no interest.

Reference no: EM133180189

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