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4 5 3 a . What are the investment's NPV and IR of $ 4 4 , 5 2 4 percent is considering a b
a What are the investment's NPV and IR of $ percent is considering a
b The IRR assumes that each cash fl reinvestment rate is achieved, what is the to reinvested at the IRR. If that end of the third year?
c The NPV technique assumes that each cash fil of cost of capital. What would be the total valew is reinvested at the firm's of the third year, if the funds are reinvested of the cash flows at the end LO
d Why does management know that the reinvestment assumption for the NPV the IRR is uncertain? LO
This problem combines material from Chapters and The financial manager has determined the following schedules for the cost of funds:
tableDebt Ratio,Cost of Debt,Cost of Equity
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