Question
Consider the following cash flows: C 0 C 1 C 2 C 3 C 4 $22 +$20 +$20 +$20 $40 a. Calculate both the internal
Consider the following cash flows:
C0 | C1 | C2 | C3 | C4 |
$22 | +$20 | +$20 | +$20 | $40 |
a. Calculate both the internal rates of return on this project out of which one is (a shade above) 7% and that the other is (a shade below) 34%. (Round your answers to 2 decimal places.)
b. Is the project attractive if the discount rate is 5%? (Use the minus sign for negative values. Do not round intermediate calculations. Round your answer to 3 decimal places.)
c-1. Is the project attractive if the discount rate is 20%? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
c-2. Is the project attractive if the discount rate is 40 percent? (Use the minus sign for negative values. Do not round intermediate calculations. Round your answer to 3 decimal places.)
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