Question
You are offered the chance to participate in a project that produces the following cash flows: C o C 1 C 2 +$5,000 +$4,000 -$11,000
You are offered the chance to participate in a project that produces the following cash flows:
Co
C1
C2
+$5,000
+$4,000
-$11,000
The internal rate of return is 13.6%. If the opportunity cost of capital is 12%, would you accept the offer? What is the net present value of the project?
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Microeconomics
Authors: Glenn Hubbard, Anthony O'Brien
7th Edition
0134737504, 978-0134737508
