Question
Consider a project that requires an initial investment of $105,000 and will produce a single cash flow of $146,000 in 6 years. a. What is
Consider a project that requires an initial investment of $105,000 and will produce a single cash flow of $146,000 in 6 years.
a. What is the NPV of this project if the 6-year interest rate is 4.9% (EAR)?
b. What is the NPV of this project if the 6-year interest rate is 10.2% (EAR)?
c. What is the highest 6-year interest rate such that this project is still profitable?
a. What is the NPV of this project if the 6-year interest rate is 4.9% (EAR)?
The NPV in this case (EAR equals 4.9 %) is $ . (Round to the nearest dollar.)
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Business Analysis And Valuation Using Financial Statements Text And Cases
Authors: Krishna G. Palepu, Paul M. Healy, Victor L Bernard
3rd Edition
0324118945, 9780324118940
