Question
An investment has an installed cost of $563,382. The cash flows over the four-year life of the investment are projected to be $192,584, $236,318, $184,674,
An investment has an installed cost of $563,382. The cash flows over the four-year life of the investment are projected to be $192,584, $236,318, $184,674, and $152,313.
Requirement 1: |
If the discount rate is zero, what is the NPV? (Do not round intermediate calculations.) |
NPV | $ |
Requirement 2: |
If the discount rate is infinite, what is the NPV? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign.) |
NPV | $ |
Requirement 3: |
At what discount rate is the NPV just equal to zero? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Discount rate | % |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started