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(NPV with different required rates of return) Mooby's is considering building a new theme park. After future cash flows were estimated, but before the project
(NPV with different required rates of return) Mooby's is considering building a new theme park. After future cash flows were estimated, but before the project could be evaluated, the economy picked up and with that surge in the economy interest rates rose. That rise in interest rates was reflected in the required rate of return Mooby's used to evaluate new projects. As a result, the required rate of return for the new theme park jumped from 9.5 percent to 11 percent. If the initial outlay for the park is expected to be $200 million and the project is expected to return free cash flows of $40 million in years 1 through 5 and $70 million in years 6 and 7 , what is the project's NPV using the new required rate of return? How much did the project's NPV change as a result of the rise in interest rates? If the required rate of return is 9.5 percent, the project's NPV is 9 million. (Round to two decimal places.) (IRR, payback, and calculating a missing cash flow) Mode Publishing is considering building a new printing facility that will involve a large initial outlay and then result in a series of positive cash flows for 4 years. The estimated cash flows associated with this project are: . If you know that the project has a regular payback of 2.1 years, what is the project's internal rate of return? If you know that the project has a regular payback of 2.1 years, what is the initial cash outlay of the project? $ million (Round to the nearest whole number.)
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