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An investment has an installed cost of 561,382 An investment has an installed cost of $561,382. The cash flows over the four-year life of the
An investment has an installed cost of 561,382
An investment has an installed cost of $561,382. The cash flows over the four-year life of the investment are projected to be $190,584, $234,318, $182,674, and $150,313. Hint: The IRR for these cash flows is 13.85 percent. Requirement 1: If the discount rate is zero, what is the NPV? $ Requirement 2: If the discount rate is infinite, what is the NPV? $ Requirement 3: At what discount rate is the NPV just equal to zero? %Step by Step Solution
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