Question
Consider a project that requires an initial investment of $ 96 comma 000$96,000 and will produce a single cash flow of $ 146 comma 000$146,000
Consider a project that requires an initial investment of
$ 96 comma 000$96,000
and will produce a single cash flow of
$ 146 comma 000$146,000
in
66
years.a. What is the NPV of this project if the
66-year
interest rate is
5.2 %5.2%
(EAR)?b. What is the NPV of this project if the
66-year
interest rate is
10.2 %10.2%
(EAR)?c. What is the highest
66-year
interest rate such that this project is still profitable?a. What is the NPV of this project if the
66-year
interest rate is
5.2 %5.2%
(EAR)?The NPV in this case
(EAR equals 5.2 %EAR=5.2%)
is
$21667232166723.
(Round to the nearest dollar.)
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