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A project that requires an initial investment of $340,000 is expected to have an after-tax cash flow of $70,000 per year for the first two
A project that requires an initial investment of $340,000 is expected to have an after-tax cash flow of $70,000 per year for the first two years, $90,000 per year for the next two years, and $150,000 for the fifth year? Assume the required return for this project is 10%.
What is the equivalent annual annuity using a 10% required rate of return?
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Q36. A project that requires an initial investment of $340,000 is expected to have an after-tax cash flow of $70,000 per year for the first two years, $90,000 per year for the next two years, and $150,000 for the fifth year? Assume the required return for this project is 10%.| a. What is the NPV of the project % ? NPV =$3,715.34 b. What is the IRR of the project? IRR=10.38% c. What is the MIRR of the project? MIRR =10.24% d. What is the PI of the project? PI =1.011 e. What decision would you make regarding this project if the required rate of return is 10%? f. What is the equivalent annual annuity using a 10% required rate of return? The EAA = $980.10Step by Step Solution
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