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Consider the following project: The cost of capital is 1 5 % . a . Calculate the NPV . b . Write down the equation
Consider the following project: The cost of capital is a Calculate the NPV b Write down the equation for the IRR of the project. c What is the maximum number of positive IRRs for this project? d Is the NPV function for this project upwardsloping, downwardsloping, or does it have a different shape? e Is the IRR greater than or lower than No calculations are necessary to answer this question. f Calculate the Profitability Index. g Calculate the simple payback period. h Calculate the discounted payback period.
Consider the following project:
The cost of capital is
a Calculate the NPV
b Write down the equation for the IRR of the project.
c What is the maximum number of positive IRRs for this project?
d Is the NPV function for this project upwardsloping, downwardsloping, or does it have a
different shape?
e Is the IRR greater than or lower than No calculations are necessary to answer this
question.
f Calculate the Profitability Index.
g Calculate the simple payback period.
h Calculate the discounted payback period.
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