A project has cash flows of $15,000, $8,000, and $5,000 at the end of year's 1,...
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A project has cash flows of $15,000, $8,000, and $5,000 at the end of year's 1, 2, and 3 years, respectively. If the prevailing annual effective interest rate is 9%, The initial investment amount is $ 25,000 and the annual effective interest rate (Discount Rate) is 9%. Would you buy the project if it costs $25,000 at the beginning of year 1? (Answer Yes/No). What is the net present value of this investment? Round your answer to the nearest whole dollar without $ sign (example $5,436.75 enter as 5,437)? At what interest rate would you accept this investment? Please input your answer to three decimal places without the % sign. A project has cash flows of $15,000, $8,000, and $5,000 at the end of year's 1, 2, and 3 years, respectively. If the prevailing annual effective interest rate is 9%, The initial investment amount is $ 25,000 and the annual effective interest rate (Discount Rate) is 9%. Would you buy the project if it costs $25,000 at the beginning of year 1? (Answer Yes/No). What is the net present value of this investment? Round your answer to the nearest whole dollar without $ sign (example $5,436.75 enter as 5,437)? At what interest rate would you accept this investment? Please input your answer to three decimal places without the % sign.
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Answer rating: 100% (QA)
SOLUTION To determine whether to buy the project and calculate the net present value NPV we need to ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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