Recalculate the NPV of the office building venture in Section 3.1 at interest rates of 5, 10,

Question:

Recalculate the NPV of the office building venture in Section 3.1 at interest rates of 5, 10, and 15 percent. Plot the points on a graph with NPV on the vertical axis and the discount rates on the horizontal axis. At what discount rate (approximately) would the project have zero NPV? Check your answer.

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...