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3. An investment opportunity has projected costs and revenues as shown on the diagram in thousands of dollars. Year 0 1 2 3 4 5
3. An investment opportunity has projected costs and revenues as shown on the diagram in thousands of dollars. Year 0 1 2 3 4 5 5 6 Revenue $ 200 $250 $ 575 $ 600 $ 600 $ 600 Costs -$ 450 - $ 300 - $ 450 - $ 225 - $ 150 - $ 150 - $ 250 The investor's minimum rate of return is 12% compounded annually. Calculate the project before-tax cash flow and then determine the ROR, NPV, PI, and Growth ROR for the project using the 6-year evaluation life. Then develop the cumulative NPV diagram and indicate the project maximum capital exposure, discounted payback, and NPV on your diagram 3. An investment opportunity has projected costs and revenues as shown on the diagram in thousands of dollars. Year 0 1 2 3 4 5 5 6 Revenue $ 200 $250 $ 575 $ 600 $ 600 $ 600 Costs -$ 450 - $ 300 - $ 450 - $ 225 - $ 150 - $ 150 - $ 250 The investor's minimum rate of return is 12% compounded annually. Calculate the project before-tax cash flow and then determine the ROR, NPV, PI, and Growth ROR for the project using the 6-year evaluation life. Then develop the cumulative NPV diagram and indicate the project maximum capital exposure, discounted payback, and NPV on your diagram
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