Question
A project that costs $3,700 to install will provide annual cash flows of $1,150 for each of the next 6 years. a. What is NPV
A project that costs $3,700 to install will provide annual cash flows of $1,150 for each of the next 6 years.
a. What is NPV if the discount rate is 11%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. 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.)
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
8th Edition
0324258917, 9780324258912
