Question
Luft Watch Company is considering an investment of $26,000, which produces the following inflows: Year Cash Flow 1 $14,000 2 13,000 3 10,000 You are
Luft Watch Company is considering an investment of $26,000, which produces the following inflows: Year Cash Flow 1 $14,000 2 13,000 3 10,000 You are going to use the NPV profile to approximate the value for the IRR. Please follow these steps: a. Determine the NPV of the project based on a zero discount rate. NPV $ b. Determine the NPV of the project based on a 10 percent discount rate. NPV $ c. Determine the NPV of the project based on a 22 percent discount rate (it will be negative). (Negative answer should be indicated by a minus sign. Omit $ sign in your response.) NPV $
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