Question
A project that costs $3,700 to install will provide annual cash flows of $1,150 for each of the next 6 years. Calculate the NPV if
A project that costs $3,700 to install will provide annual cash flows of $1,150 for each of the next 6 years.
| Calculate the NPV if the discount rate is 11%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| NPV | $ |
| Is this project worth pursuing? | ||
|
| How high can the discount rate be before you would reject the project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) |
| Discount rate | % |
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International Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
1292200743, 1292200766, 9781292200767, 978-1292200743
