Consider a project that requires an initial investment of $95,000 and will produce a single cash flow
Question:
Consider a project that requires an initial investment of $95,000 and will produce a single cash flow of $145,000 in six years.
a. What is the NPV of this project if the five-year interest rate is 5.2% (EAR)?
b. What is the NPV of this project if the five-year interest rate is 10.2% (EAR)?
c. What is the highest six-year interest rate such that this project is still profitable?
AppendixcLO1
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Related Book For
Corporate Finance The Core
ISBN: 9781292431611
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo
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