Question
A new computer system will require an initial outlay of $15,500, but it will increase the firm's cash flows by $3,100 a year for each
A new computer system will require an initial outlay of $15,500, but it will increase the firm's cash flows by $3,100 a year for each of the next 7 years.
How high can the discount rate be before you would reject the project?
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
978-0538482387
