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the other drop down menu is negative and postive. $273,000 per year for 10 years. Assume the cost of capital is 10%. a. Calculate the

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the other drop down menu is negative and postive.

$273,000 per year for 10 years. Assume the cost of capital is 10%. a. Calculate the NPV of this investment opportunity, assuming all cash flows occur at the end of each year. Should the company make the investment? b. By how much must the cost of capital estimate deviate to change the decision? (Hint: Use Excel to calculate the IRR.) c. What is the NPV of the investment if the cost of capital is 13% ? Note: Assume that all cash flows occur at the end of the appropriate year and that the inflows do not start until year 7 . a. Calculate the NPV of this investment opportunity, assuming all cash flows occur at the end of each year. Should the company make the investment? The present value of the costs is $ (Round to the nearest dollar.) The present value of the benefits is $. (Round to the nearest dollar.) The net present value is $. (Round to the nearest dollar.) (Select from the drop-down menus.) You should the investment because the NPV is b. By how n To change t c. What is tl The presen of capital estimate deviate to change the decision? (Hint: Use Excel to calculate the IRR.) viation would need to be %. (Round to two decimal places.) stment if the cost of capital is 13% ? is $ (Round to the nearest dollar.) (Round to the nearest dollar.) The present value of the benefits is $ (Round to the nearest dollar.) The NPV will be \$ (Round to the nearest dollar.)

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