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I need help with this question. Thank you Net. Present Value Method and Internal Rate of Return Method for a Service Company Keystone Healtheare Corp.
I need help with this question. Thank you
Net. Present Value Method and Internal Rate of Return Method for a Service Company Keystone Healtheare Corp. is proposing to spend $260,820 on an eight-year project that has estimated net cash flows of 542,000 for each of the eight years. Present Value of an Annuity of $1 at Compound Interest a. Compute the net present value, using a rate of return of 10%. Use the table of present value of an annuity of $1 presented above. If required, round your answers to the nearest dollar. If required, use the minus sign to indicate a negative net present value. b. Based on the analysis prepared in part (a); is the rate of return (1) more than 10\%, (2) 10\%, or (3) less than 10% ? c. Determine the internal rate of return by computing a present value factor for an annuity of $1 and using the table of the present value of an annuity of $1 presented above Step by Step Solution
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