Question
Hi, please answer the below question ASAP for MBA 570 Corporate Finance. Consider a project that requires an initial investment of $105,000 and will produce
Hi, please answer the below question ASAP for MBA 570 Corporate Finance.
Consider a project that requires an initial investment of $105,000 and will produce a single cash flow of $146,000 in 6 years.
a. What is the NPV of this project if the 6-year interest rate is 4.9% (EAR)?
b. What is the NPV of this project if the 6-year interest rate is 10.2% (EAR)?
c. What is the highest 6-year interest rate such that this project is still profitable?
a. What is the NPV of this project if the 6-year interest rate is 4.9% (EAR)?
The NPV in this case (EAR equals 4.9 %) is $ . (Round to the nearest dollar.)
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