An investment has an installed cost of $530,800. The cash flows over the four-year life of...
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An investment has an installed cost of $530,800. The cash flows over the four-year life of the investment are projected to be $218,850, $235,450, $202,110, and $150,820. If the discount rate is zero, what is the NPV? (Omit $ sign in your response.) NPV $ If the discount rate is infinite, what is the NPV? (Negative answer should be indicated by a minus sign. Omit $ sign in your response.) NPV $ At what discount rate is the NPV just equal to zero? (Round the final answer to 2 decimal places.) IRR % An investment has an installed cost of $530,800. The cash flows over the four-year life of the investment are projected to be $218,850, $235,450, $202,110, and $150,820. If the discount rate is zero, what is the NPV? (Omit $ sign in your response.) NPV $ If the discount rate is infinite, what is the NPV? (Negative answer should be indicated by a minus sign. Omit $ sign in your response.) NPV $ At what discount rate is the NPV just equal to zero? (Round the final answer to 2 decimal places.) IRR %
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SOLUTION If the discount rate is zero the NPV can be calculated by simply adding ... View the full answer
Related Book For
Essentials Of Corporate Finance
ISBN: 9781265414962
11th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Posted Date:
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