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(NPV with varying required rates of return) Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an
(NPV with varying required rates of return) Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $4,000,000 and would generate annual free cash inflows of $1,200,000 per year for 8 years. Calculate the project's NPV given: a. A required rate of return of 8 percent b. A required rate of return of 12 percent c. A required rate of return of 15 percent d. A required rate of return of 17 percent a. If the required rate of return is 8 percent, the project's NPV is $(Round to the nearest dollar.) b. If the required rate of return is 12 percent, the project's NPV is (Round to the nearest dollar.) c. If the required rate of return is 15 percent, the project's NPV is $7 (Round to the nearest dollar.) d. If the required rate of return is 17 percent, the project's NPV is 5 (Round to the nearest dollar.)
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