Question
A. What is the NPV for the following project cash flows at a discount rate of 15%? C0 = - $1,000, C1 = $700, C2
A. What is the NPV for the following project cash flows at a discount rate of 15%? C0 = - $1,000, C1 = $700, C2 = $700.
| - $308.70 | ||
| - $138.00 | ||
| $138.00 | ||
| $308.70 |
B. As the discount rate is increased, the NPV of a specific project will:
| increase. | ||
| decrease. | ||
| remain constant. | ||
| decrease to zero, then remain constant. |
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
14th Edition
0135175216, 978-0135175217
