Question
A project that provides annual cash flows of $17,300 for nine years costs $78,000 today. Is this a good project if you require 8% on
A project that provides annual cash flows of $17,300 for nine years costs $78,000 today.
Is this a good project if you require 8% on your investment?
What if you require 20% on your investment?
At what rate would you be indifferent between accepting the project and rejecting it?
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Get StartedRecommended Textbook for
Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
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