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Consider a project that requires an initial investment of $102,000 and will produce a single cash flow of $150,000 in 5 years. a. What is
Consider a project that requires an initial investment of $102,000 and will produce a single cash flow of $150,000 in 5 years. a. What is the NPV of this project if the 5-year interest rate is 4.8% (EAR)? b. What is the NPV of this project if the 5-year interest rate is 9.8% (EAR)? c. What is the highest 5-year interest rate such that this project is still profitable? a. What is the NPV of this project if the 5-year interest rate is 4.8% (EAR)? The NPV in this case (EAR=4.8%) is $ 16655. (Round to the nearest dollar.) b. What is the NPV of this project if the 5-year interest rate is 9.8% (EAR)? The NPV in this case (EAR = 9.8%) is $ - 8010. (Round to the nearest dollar.) c. What is the highest 5-year interest rate such that this project is still profitable? The highest EAR such that this project is still profitable is %. (Round to two decimal places.)
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