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You are evaluating a proposed project for your company. The project is expected generate the following end-of-year cash flows: You have been told you should
You are evaluating a proposed project for your company. The project is expected generate the following end-of-year cash flows: You have been told you should evaluate this project with an interest rate of 9 What is the project's NPV $219.77 $135.60 $151.80 $101.62 $51.43 Your group leader has now told you that the risk of the project was understated before. As a result, she tells you to recalculate the project's NPV with an 11% interest rate. What is the new NPW? -$65.36 -$22.97 -$115.38 -$28.59 -$190.92 When the project was first evaluated at 9%, you would have advised that the company the project he project because it value for the company. But now with an 11% interest rate, you will advise the company to the project it value for the company. Calculate the project's internal rate of return (IRR). 10.76% 15.08% 13.38% 9.93% 13.38%
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