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Consider a project that requires an initial investment of $95,000 and will produce a single cash flow of $155,000 in 4 years. a. What is
Consider a project that requires an initial investment of $95,000 and will produce a single cash flow of $155,000 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 10.2% (EAR)? c. What is the highest 4-year interest rate such that this project is still profitable? a. What is the NPV of this project if the 4-year interest rate is 4.8% (EAR)? The NPV in this case (EAR=4.8%) is $ (Round to the nearest dollar.) b. What is the NPV of this project if the 4-year interest rate is 10.2% (EAR)? The NPV in this case (EAR =10.2%) is $ (Round to the nearest dollar.) c. What is the highest 4-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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