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NPV and IRR A project that costs $664,483.37 to install will provide annual cash flows of $98,000.00 for each of the next 12 years. a.
NPV and IRR
A project that costs $664,483.37 to install will provide annual cash flows of $98,000.00 for each of the next 12 years. |
a. | Calculate the NPV if the discount rate is 27.50%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
NPV | $ |
b. | Is this project worth pursuing? | ||||
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c. | How high can the discount rate be before you would reject the project (i.e. What is the projects IRR)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
Discount rate | % |
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