Question
A project that provides annual cash flows of $2,450 for nine years costs $10,100 today. Requirement 1: At a required return of 9 percent, what
A project that provides annual cash flows of $2,450 for nine years costs $10,100 today.
Requirement 1: At a required return of 9 percent, what is the NPV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) __________ NPV $
Requirement 2: At a required return of 25 percent, what is the NPV of the project? (Do not round intermediate calculations. A negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16).) _____________NPV $
Requirement 3: At what discount rate would you be indifferent between accepting the project and rejecting it? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) _______________ Discount rate %
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