Question
An investment has an installed cost of $572,382. The cash flows over the four-year life of the investment are projected to be $201,584, $245,318, $193,674,
An investment has an installed cost of $572,382. The cash flows over the four-year life of the investment are projected to be $201,584, $245,318, $193,674, and $161,313.
A) If the discount rate is zero, what is the NPV?
B) If the discount rate is infinite, what is the NPV?
C) At what discount rate is the NPV just equal to zero? (enter as a percentage rounded to 2 decimal places)
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Public Finance In Canada
Authors: Harvey S. Rosen, Ted Gayer, Jean-Francois Wen, Tracy Snoddon
5th Canadian Edition
1259030776, 978-1259030772
