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please solve this problem showing the calculations steps. Thank you Consider a project that requires an initial investment of $99,000 and will produce a single
please solve this problem showing the calculations steps. Thank you
Consider a project that requires an initial investment of $99,000 and will produce a single cash flow of $146,000 in 5 years. a. What is the NPV of this project if the 5-year interest rate is 5.2% (EAR)? b. What is the NPV of this project if the 5-year interest rate is 9.8% (EAR)? c. What is the highest 5-year interest rate such that this project is still profitable? a. What is the NPV of this project if the 5-year interest rate is 5.2% (EAR)? The NPV in this case (EAR = 5.2%) is $ (Round to the nearest dollar.) b. What is the NPV of this project if the 5-year interest rate is 9.8% (EAR)? The NPV in this case (EAR = 9.8%) is $ (Round to the nearest dollar.) c. What is the highest 5-year interest rate such that this project is still profitable? The highest EAR such that this project is still profitable is %. (Round to two decimal places.)
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