=+a. Calculate the investments net present value (NPV) at each of the following discount rates: 0%, 5%,
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=+a. Calculate the investment’s net present value (NPV) at each of the following discount rates: 0%, 5%, 7.5%, 10%, 15%, 20%, 25%, and 30%.
b. What does the NPV profile tell you about this project’s IRR?
c. If Antonio follows the IRR decision rule and his cost of capital is 5%, should he accept or reject the investment opportunity? Why is it hard to make a decision on this investment based solely on the IRR rule?
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Related Book For 
Principles Of Managerial Finance
ISBN: 9781292261515
15th Global Edition
Authors: Chad J. Zutter, Scott Smart
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