Consider the project balances in Table P5.19 for a typical investment project with a service life of
Question:
Consider the project balances in Table P5.19 for a typical investment project with a service life of four years.
(a) Determine the interest rate used in computing the project balance.
(b) Reconstruct the original cash flows of the project.
(c) Would the project be acceptable at i = 15%?
Transcribed Image Text:
TABLE P5.19 A₁ -$10,000 n 0 1 2 3 4 1,840 I Project Balance - $10,000 -9,000 -7,000 -6,000 100
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