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Scenario 6. Booker B o o k e r is considering a capital investment that costs $ 495 comma 000 $ 4 9 5 ,
Scenario 6.
BookerBooker
is considering a capital investment that costs
$ 495 comma 000$495,000
and will provide
net cash inflows for three years.
Using a hurdle rate of
1212%,
find the NPV of the investment. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign to represent a negative NPV.)
Scenario 7. What is the IRR of the capital investment described in Question 6?
The IRR is the interest rate at which the investment
NPV equals 0.NPV = 0.
We tried 1212%
in question 6, now we'll try 1414%
and calculate the NPV. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign to represent a negative NPV.) Net Present Value (NPV |
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