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DISCOUNTED CASH FLOW CASE 2 0 POINTS. SHOW YOUR WORK AND CALCUALTIONS Spending $ 4 0 , 0 0 0 on a new truck would
DISCOUNTED CASH FLOW CASE POINTS. SHOW YOUR WORK AND CALCUALTIONS
Spending $ on a new truck would increase delivery revenues by $ annually over the truck's year life. Graph the relationship between NPV and the discount rate for this project. Hint: Assume for simplicity that the relationship is linear and find two points on the line's graph. Is this project acceptable at a discount rate of What is the highest discount rate at which this project is acceptable?
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