What is npv-oxygen optimization would compute for project

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Reference no: EM131556202

A number of companies, including Litchfield Design and oxygen optimization, are considering undertaking project A, which is believed by all to have a level of risk that is equal to that of the average-risk project at Litchfield Design. Project A is a project that would require an initial investment of 5, 840 dollars and then produce an expected cash flow of 11, 511 dollars in 7 years. Project A has an internal rate of return of 10.179 percent. The weighted-average cost of capital for Litchfield Design is 9.35 percent and the weighted-average cost of capital for oxygen optimization is 10.78 percent. What is the NPV that Oxygen Optimization would compute for project A?

Reference no: EM131556202

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