Consider a project that requires an initial investment of

$96,000

and will produce a single cash flow of

$151,000

in

5

years.

a. What is the NPV of this project if the

5-year

interest rate is

4.8%

(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?

Question content area bottom

Part 1

a. What is the NPV of this project if the

5-year

interest rate is

4.8%

(EAR)?

The NPV in this case

(EAR=4.8%)

is

$enter your response here.

(Round to the nearest cent.)