Question
Project A has upfront costs of $250,000 and is expected to produce net cash flows of $85,000 in year 1, $120,000 in year 2
Project A has upfront costs of $250,000 and is expected to produce net cash flows of $85,000 in year 1, $120,000 in year 2 and $110,000 in year 3. d) What is the NPV if the appropriate cost of capital is 9.5% ? $_ the project be one you would accept at a cost of capital of 9.5% (Yes or No) e) What is the NPV if the appropriate cost of capital is 14.5 % ? $_ the project be one you would accept at a cost of capital of 14.5% ? (Yes or No) f) What is the IRR of this project? would. would.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
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