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4. The Net Present Value (NPV) of a project is $6 million, for a 10%pa discount rate. It becomes negative, -$4 million, if the discount
4. The Net Present Value (NPV) of a project is $6 million, for a 10%pa discount rate. It becomes negative, -$4 million, if the discount rate is 15 per cent. If this is a linear function, what would the Internal Rate of Return (IRR) be for this project? 5. What is the internal Rate of Return (IRR) of the following cash flow stream produced from a small gold mining operation shown below? Year 2 Year 1 Year 3 Year 4 +$35.3M Figure: Cash flow stream from small gold mining operation $44.2M +$25.1M +$15.9M 6. A 70 tonne bottom dump truck costs $800,000. The company purchasing this truck will pay 50% of the total price up front and the rest will be paid off in 8 equal instalments over 8 years at an annual interest rate of 7% starting in year 1. How much does the company need to pay each year across the eight year period
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