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TTHREE YEARS NET CASH 300,000 205,000 102,000 Scenario 5, Assuming a 12% interest rate, how much would Katie have to invest now to be able
TTHREE YEARS NET CASH
300,000
205,000
102,000
Scenario 5, Assuming a 12% interest rate, how much would Katie have to invest now to be able to withdraw $15,000 at the end of every year for the next ten years? Round your answer to the nearest whole dollar.) Present value $ Scenario 6. Earl is considering a capital investment that costs $500,000 and will provide net cash inflows for three years. Using a hurdle rate of 12%, 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) Net Present Value (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 = 0, We tried 12% in question 6, now we'll try 14% 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) The IRR for the project isStep by Step Solution
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