Question
An investment has an installed cost of $519,800. The cash flows over the four-year life of the investment are projected to be $229,850, $246,450, $213,110,
An investment has an installed cost of $519,800. The cash flows over the four-year life of the investment are projected to be $229,850, $246,450, $213,110, and $161,820, respectively. |
a. | If the discount rate is zero, what is the NPV? (Do not round intermediate calculations.) |
b. | If the discount rate is infinite, what is the NPV? (A negative answer should be indicated by a minus sign.) |
c. | At what discount rate is the NPV just equal to zero? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
