Question

A proposed nuclear power plant will cost $1.6 billion to build and then will produce cash flows of $240 million a year for 15 years. after that period (in year 15), it must be decommissioned at a cost of $840 million. what is project npv if the discount rate is 4%

Answer 1

A proposed nuclear power plant will cost $1.6 billion to build and then will produce cash flows of $240 million a year for 15 years. After that period (in year 15), it must be decommissioned at a cost of $840 million.