Question
23. NPV profile of a project. Given the following cash flows of Project L-2, draw the NPV profile. Hint: use a discount rate of zero
23. NPV profile of a project. Given the following cash flows of Project L-2, draw the NPV profile. Hint: use a discount rate of zero for one intercept (y-axis) and solve for the IRR for the other intercept (x-axis).
Cash flows:
Year 0 = -$270,000
Year 1 = $42,000
Year 2 = $71,000
Year 3 = $120,000
Year 4 = $137,000
What is the NPV of project L-2 where zero is the discount rate?
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Finance In America An Unfinished Story
Authors: Kevin R. Brine, Mary Poovey
1st Edition
022650204X, 978-0226502045
