An analyst evaluates a company's capital investment with the following details:
Initial cash outlay: $90 million
Annual before-tax cash flows (Year 1 to Year 6): $50 million
Marginal tax rate: 15%
Required rate of return: 12%
The net present value (NPV) of the investment is closest to:
Exam-Like
A
$85 million.
60.0%
B
$116 million.
20.0%
C
$175 million.
20.0%
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An analyst evaluates a company's capital investment with the following details:
- Initial cash outlay: $90 million
- Annual before-tax cash flows (Year 1 to Year 6): $50 million
- Marginal tax rate: 15%
- Required rate of return: 12%
The net present value (NPV) of the investment is closest to: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz