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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 $6,000,000 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 13 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 13 percent, the project's NPV is $ (Round to the nearest dollar.) d. If the required rate of return is 17 percent, the project's NPV is $ (Round to the nearest dollar.)
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