You are a financial analyst for XYZ Corporation, which is considering investing in a project that requires
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Question:
You are a financial analyst for XYZ Corporation, which is considering investing in a project that requires an initial investment of $100,000 and is expected to generate cash flows of $20,000 per year for the next 10 years. The company's cost of capital is 8%. Calculate the following:
- The net present value (NPV) of the project.
- The internal rate of return (IRR) of the project.
Related Book For
Principles of managerial finance
ISBN: 978-0132479547
12th edition
Authors: Lawrence J Gitman, Chad J Zutter
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