Question
A project that costs $668,200.91 to install will provide annual cash flows of $102,000.00 for each of the next 13 years. a. Calculate the NPV
| A project that costs $668,200.91 to install will provide annual cash flows of $102,000.00 for each of the next 13 years. |
| a. | Calculate the NPV if the discount rate is 13.90%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| NPV | $ |
| b. | Is this project worth pursuing? |
multiple choice
|
| c. | How high can the discount rate be before you would reject the project (i.e. What is the projects IRR)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
