A project with a $3,100 setup cost will generate an annual cash flow of $850 for each

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A project with a $3,100 setup cost will generate an annual cash flow of $850 for each of the next 6 years.

Calculate NPV if the discount rate is 11%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

NBD-$

How high can the discount rate be before rejecting the project? (Do not round up intermediate calculations. Enter your answer as a percentage, rounded to 2 decimal places.)

Discount rate-%

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-1259722615

9th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Posted Date: Apr 26, 2023 07:57 AM

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A project with a $3,100 setup cost will generate an annual cash flow of $850 for each

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To calculate the NPV we need to discount each cash flow to its present value and then sum them up Th... View the full answer

Fundamentals of Corporate Finance

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