Question

A project that provides annual cash flows of $17,300 for nine years costs $79,000 today. THREE...

A project that provides annual cash flows of $17,300 for nine years costs $79,000 today.

THREE QUESTIONS:

What is the NPV for the project if the required return is 8 percent

What is the NPV for the project if the required return is 20 percent

At what discount rate would you be indifferent between accepting the project and rejecting it ?

Homework Answers

Answer #2

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