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The Hudson Corporation makes an investment of $29,400 that provides the following cash flow: Use Appendix B and Appendix D for an approximate answer but
The Hudson Corporation makes an investment of $29,400 that provides the following cash flow: |
Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. |
Year | Cash Flow | ||
1 | $ 14,000 | ||
2 | 14,000 | ||
3 | 8,000 | ||
a. | What is the net present value at a discount rate of 6 percent? (Do not round intermediate calculations and round your answer to 2 decimal places.) |
Net present value | $ |
b. | What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) |
Internal rate of return | % |
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