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Use the information for the question(s) below. 150000 100000 50000 0 NPV 1 3 5 6 7 8 9 10 -50000 -100000 -150000 -200000 Discount

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Use the information for the question(s) below. 150000 100000 50000 0 NPV 1 3 5 6 7 8 9 10 -50000 -100000 -150000 -200000 Discount Rate The owner of a hair salon spends $1,000,000 to renovate its premises, estimating that this will increase her cash flow by $220,000 per year. She constructs the above graph, which shows the net present value (NPV) as a function of the discount rate. At what discount rate does her decision to renovate become untenable? O A. 4.0% OB. 5.0% O C. 3.0% OD. 4.8% O E. 3.3% Use the information for the question(s) below. 150000 100000 50000 0 NPV 1 3 5 6 7 8 9 10 -50000 -100000 -150000 -200000 Discount Rate The owner of a hair salon spends $1,000,000 to renovate its premises, estimating that this will increase her cash flow by $220,000 per year. She constructs the above graph, which shows the net present value (NPV) as a function of the discount rate. At what discount rate does her decision to renovate become untenable? O A. 4.0% OB. 5.0% O C. 3.0% OD. 4.8% O E. 3.3%

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