Question
Parts a, b, c, d Please: (NPV with varying required rates of return) Gubanich Sportswear is considering building a new factory to produce aluminum baseball
Parts a, b, c, d Please:
(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 $1,100,000 per year for 7 years. Calculate the project's NPV given:
a. A required rate of return of 9 percent
b. A required rate of return of 10 percent
c. A required rate of return of 14 percent
d. A required rate of return of 17 percent
Question content area bottom
a. If the required rate of return is 9 percent, the project's NPV is $enter your response here. (Round to the nearest dollar.)
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