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3. Consider a project that requires an initial investment of $102,000 and will produce a single cash flow of $147,000 in 6 years. a. What
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Consider a project that requires an initial investment of $102,000 and will produce a single cash flow of $147,000 in 6 years. a. What is the NPV of this project if the 6-year interest rate is 5.2% (EAR)? b. What is the NPV of this project if the 6-year interest rate is 9.8% (EAR)? c. What is the highest 6-year interest rate such that this project is still profitable? a. What is the NPV of this project if the 6-year interest rate is 5.2% (EAR)? The NPV in this case (EAR = 5.2%) is $ (Round to the nearest dollar.)Step by Step Solution
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