Question
1. Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative amount should be indicated by a minus sign.
1. Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)
| Project M | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow: | −$1,600 | $470 | $600 | $640 | $720 | $220 |
Should the project be accepted or rejected?
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NPV R 8 100 008 470 1008 R R 11 1i 1i 600 1008 640 1008 Time 0 1 2 3 ...
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Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
3rd edition
1259252221, 007786168X, 9781259252228, 978-0077861681
