A project has an NPV of $54,000. Calculate the cost of capital of this project if it
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Question:
A project has an NPV of $54,000. Calculate the cost of capital of this project if it generates the following cash flows for six years after an initial investment of $210,000: (Round answer to 4 decimal places, e.g. 25.2513%.)
| Year 1: | $54,000 | ||
| Year 2: | $54,000 | ||
| Year 3: | $35,000 | ||
| Year 4: | $82,000 | ||
| Year 5: | $66,000 | ||
| Year 6: | $77,000 |
| Cost of capital | Type your answer here % |
Expert Answer:
SOLUTION To calculate the cost of capital ie the discount rate for this project we can use the formu... View the full answer
Related Book For 
Basic Technical Mathematics
ISBN: 9780137529896
12th Edition
Authors: Allyn J. Washington, Richard Evans
Posted Date:
