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( NPV with varying required rates of retum ) Gubanich Sportswear is considering building a new factory to produce ( NPV with varying required rates

(NPV with varying required rates of retum) Gubanich Sportswear is considering building a new factory to produce(NPV with varying required rates of retum) Gubanich Sportswear is considering building a new factory to produce
aluminum baseball bats. This project would require an initial cash outlay of $6,000,000 and would generate annual free
cash inflows of $1,000,000 per year for 6 years. Calculate the project's NPV given:
a. A required rate of return of 7 percent
b. A required rate of return of 12 percent
c. A required rate of return of 13 percent
d. A required rate of return of 16 percent
a. If the required rate of return is 7 percent, the project's NPV is $
(Round to the nearest dollar.)
aluminum baseball bats. This project would require an initial cash outlay of $6,000,000 and would generate annual free
cash inflows of $1,000,000 per year for 6 years. Calculate the project's NPV given:
a. A required rate of return of 7 percent
b. A required rate of return of 12 percent
c. A required rate of return of 13 percent
d. A required rate of return of 16 percent
a. If the required rate of return is 7 percent, the project's NPV is $
(Round to the nearest dollar.)
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