Question
ou have the chance to participate in a project that produces the following cash flows: Cash Flows ($) C 0 C 1 C 2 5,000
ou have the chance to participate in a project that produces the following cash flows:
| Cash Flows ($) | ||
| C0 | C1 | C2 |
| 5,000 | 4,000 | 11,000 |
a. The internal rate of return is 13%. If the opportunity cost of capital is 10%, what is the NPV of the project?
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Intermediate Financial Theory
Authors: Jean-Pierre Danthine, John B. Donaldson
3rd Edition
0123865492, 9780123865496
