Question

A project with an initial investment of $458,900 will generate equal annual cash flows over its...

A project with an initial investment of $458,900 will generate equal annual cash flows over its 10-year life. The project has a required return of 8.3 percent. What is the minimum annual cash flow required to accept the project?

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Answer #1

Use the Financial calculator to calculate this, you have to find the minimum equal annual cash flow whose Present Value will be equal to Present Value of the Project or In other words the NPV =0 of the Project.

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