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Consider the following project: Period 0 1 2 3 Net cash flow 135 0 82.55 114.96 The internal rate of return is 16%. The NPV,
Consider the following project:
Period | ||||
0 | 1 | 2 | 3 | |
Net cash flow | 135 | 0 | 82.55 | 114.96 |
The internal rate of return is 16%. The NPV, assuming a 16% opportunity cost of capital, is exactly zero. Calculate the expected economic income and economic depreciation in each year.
Consider the following project: 1 Period 2 82.55 Net cash flow 3 114.96 -135 The internal rate of return is 16%. The NPV, assuming a 16% opportunity cost of capital, is exactly zero. Calculate the expected economic income and economic depreciation in each year. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) Period 2 1 3 Change in value (economic depreciation) Expected economic incomeStep by Step Solution
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