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a PROJECT THAT PROVIDES ANNUAL CASH FLOW OF 15,300 FOR NINE YEARS COST 74,000 TODAY. iS THIS GOOD PROJECT IF THE REQUIRED RETIRN IS 8%?
a PROJECT THAT PROVIDES ANNUAL CASH FLOW OF 15,300 FOR NINE YEARS COST 74,000 TODAY. iS THIS GOOD PROJECT IF THE REQUIRED RETIRN IS 8%? wHAT IS ITS 20 %? AT WHAT DISCOUNS RATE WOULD YOU BE INDIFFERENT BETWEEN ACCEPTING THE PROJECT SND REJECTING IT? PLEASE SHOW EQUATIONS FOR EXCEL
A project that provides annual cash flows of $15,300 for nine years costs $74,000 today. Is this a good project if the required return is 8 percent? What if its 20 percent? At what discount rate would you be indifferent between accepting the project and rejecting it?Accessibility tab summary: Students please use the information below to complete the question completing the required cells. Given information for this question is presented in rows 6 through 10. The required answers are in rows 17 through 19. A project that provides annual cash flows of $15,300 for nine years costs $74,000 today. Is this a good project if the required return is 8 percent? What if its 20 percent? At what discount rate would you be indifferent between accepting the project and rejecting it? Input area: Annual cash flows$15,300 Years9 Costs$74,000 Required Return8% Required Return20% (Use cells A6 to B10 from the given information to complete this question. You must use the built-in Excel function to answer this question.) Output area: NPV at 8% NPV at 20% IRRStep by Step Solution
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