An investment has an installed cost of $526,800. The cash flows over the four-year life of the investment are projected to be $222,850, $239,450, $206,110,
An investment has an installed cost of $526,800. The cash flows over the four-year life of the investment are projected to be $222,850, $239,450, $206,110, and $154,820, respectively.
a.) If the discount rate is zero, what is the NPV?
b.) f the discount rate is infinite, what is the NPV?
c.) At what discount rate is the NPV just equal to zero?
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Authors: Paula H. Song, Kristin L. Reiter
3rd Edition
1567939759, 978-1567939750
