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9-18. NPV and Discount Rates [L01] An investment has an installed cost of $638,400. The cash flows over the five year life of the investment
9-18. NPV and Discount Rates [L01] An investment has an installed cost of $638,400. The cash flows over the five year life of the investment are projected to be S263,279, $236,800, S257,380, $225,320, and S167410. If the discount rate is zero, what is the NPV? If the discount rate is infinite, what is the NPV? At what discount rate is the NPVjust equal to zeno? Sketch the NPV profile for this investment based an these three points
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Behavioral Finance
Authors: Edwin Burton, Sunit N. Shah
1st Edition
111830019X, 978-1118300190
