Question
A project that costs $3,800 to install will provide annual cash flows of $880 for each of the next 7 years. a. Calculate the NPV
A project that costs $3,800 to install will provide annual cash flows of $880 for each of the next 7 years.
a.Calculate the NPV if the opportunity cost of capital is 12%?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
NPV$
b.Is this project worth pursuing?Yes? No?
c.What is the project's internal rate of return IRR?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
IRR%
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Exchange Rates and International Finance
Authors: Laurence Copeland
6th edition
273786040, 978-0273786047
