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Consider a project that requires an initial investment of $ 105000 and will produce a single cash flow of $ 147 000 in 4 years.
Consider a project that requires an initial investment of $ 105000 and will produce a single cash flow of $ 147 000 in 4 years.
a. What is the NPV of this project if the 4 -year interest rate is 4.8 % (EAR)?
b. What is the NPV of this project if the 4 -year interest rate is 9.9 % (EAR)?
c. What is the highest 4 -year interest rate such that this project is still profitable?
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