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A company is considering an investment project that has a life of four years and requires an initial investment of 800,000 . Net cash flows
A company is considering an investment project that has a life of four years and requires an initial investment of 800,000 . Net cash flows are estimated at 281,000 per year. The project has a positive net present value of 53,397 when discounted at 12 per cent per annum. Do not consider tax and inflation. Required: Calculate to the nearest 1 per cent, the maximum discount rate at which the project will be financially viable
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