A firm is considering a project which involves investing $100 now for a return of $112 a

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A firm is considering a project which involves investing $100 now for a return of $112 a year from now. What are the values of the following variables?

i the marginal productivity of the capital investment;

ii the internal rate of return on the project;

iii the net present value of the project, using a 5% discount rate;

iv the project benefit/cost ratio.

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Cost Benefit Analysis

ISBN: 9781032320755

3rd Edition

Authors: Harry F. Campbell, Richard P.C. Brown

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