Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

These 2 questions are together. Answer the first question then proceed to the next question. Thank you. You are considering a project which has $33,000set-up

image text in transcribed

image text in transcribed

These 2 questions are together. Answer the first question then proceed to the next question. Thank you.

You are considering a project which has $33,000set-up cost and produces revenue of $10,000 in year 1, $15000in year 2, and 12,000 in year 3. If the interest rate is 05 - 5%, then what is the net present value (NPV) of this project? a $ -912.33 b. $495.30 c. $1427.61 d. none of these Consider the project described in question 7. If the interest rate rises to r= .10 - 10%, then what is the new present value (NPV) of the project? a. $-3109.82 b. 5 - 2496.61 CS-1546.92 d. None of these

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Illustrating Finance Policy With Mathematica

Authors: Nicholas L. Georgakopoulos

1st Edition

3319953710, 978-3319953717

More Books

Students also viewed these Finance questions

Question

List the components of the strategic management process. page 72

Answered: 1 week ago