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Please show in EXCEL using functions Epps, Inc., has a new project under consideration that will require an investment of $9.4 million today. If the
Please show in EXCEL using functions Epps, Inc., has a new project under consideration that will require an investment of $9.4 million today. If the project is successful, the cash flows will be $2.6 million for 15 years. If the project is unsuccessful, the cash flows will be $625,000 for 9 years. The required return is 15 percent. What is the minimum probability of success that will make the project acceptable to the company? | |||||
Cost today | $ 9,400,000 | ||||
Cash flows if successful | $ 2,600,000 | ||||
Years if successful | 15 | ||||
Cash flows if not successful | $ 625,000 | ||||
Years if unsuccessful | 9 | ||||
Required return | 15% | 0 |
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