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The WD40 Company has been presented with an investment opportunity which will yield end of
year cash flows of $15,000 per year in Years 1 and 2, $25,000 per year in Years 3 through 9, and
$80,000 in Year 10. This investment will cost the firm $85,000 today, and the firm's cost of capital
is 12%. What is the NPV for this investment?

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The WD40 Company has been presented with an investment oppor.pdf

  • 1. The WD40 Company has been presented with an investment opportunity which will yield end of year cash flows of $15,000 per year in Years 1 and 2, $25,000 per year in Years 3 through 9, and $80,000 in Year 10. This investment will cost the firm $85,000 today, and the firm's cost of capital is 12%. What is the NPV for this investment?