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Problem 12-13 Economic income Consider the following project: 1 Period 2 87.55 Net cash flow 3 187.21 -185 The internal rate of return is 16%.
Problem 12-13 Economic income Consider the following project: 1 Period 2 87.55 Net cash flow 3 187.21 -185 The internal rate of return is 16%. The NPV, assuming a 16% opportunity cost of capital, is exactly zero. Calculate the expected economic income and economic depreciation in each year. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) Period 2 1 3 Change in value (economic depreciation) Expected economic income
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