Question
Consider a project that requires an initial investment of $ 105 comma 000 and will produce a single cash flow of $ 152 comma 000
Consider a project that requires an initial investment of $ 105 comma 000 and will produce a single cash flow of $ 152 comma 000 in 5 years. a. What is the NPV of this project if the 5-year interest rate is 4.9 % (EAR)? b. What is the NPV of this project if the 5-year interest rate is 10.2 % (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 4.9 % (EAR)? The NPV in this case (EAR equals 4.9 %) is $ nothing. (Round to the nearest dollar.)
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