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1 2 3 x 5 6 7 8 9 10 -50000 ents -100000 an -- 150000 -200000 Discount Rate The owner of a hair salon

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1 2 3 x 5 6 7 8 9 10 -50000 ents -100000 an -- 150000 -200000 Discount Rate The owner of a hair salon spends $1,000,000 to renovate its premises, estimating that this will increase her cash flow by $220,000 per year. She constructs the above graph, which shows the nel present value (NPV) as a function of the discount rate. At what discount rate does her decision to renovate become untonable? nete nediat cial Cal O A. 4.8% B. 3.0% OC. 4,0% OD 3.3% ter Rese miesta

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