What is the discount rate at which the following cash flows have a NPV of $0?...
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What is the discount rate at which the following cash flows have a NPV of $0? Answer in %, rounding to 2 decimals. Year 0 cash flow = -117,000 Year 1 cash flow = 45,000 Year 2 cash flow= 41,000 Year 3 cash flow = 39,000 Year 4 cash flow = 43,000 Year 5 cash flow = 32,000 Year 6 cash flow = 33,000 Answer: Check X What is the discount rate at which the following cash flows have a NPV of $0? Answer in %, rounding to 2 decimals. Year 0 cash flow = -117,000 Year 1 cash flow = 45,000 Year 2 cash flow= 41,000 Year 3 cash flow = 39,000 Year 4 cash flow = 43,000 Year 5 cash flow = 32,000 Year 6 cash flow = 33,000 Answer: Check X
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SOLUTION To calculate the discount rate at which the net present value NPV of the cash flows is zero we can use the following formula NPV 117000 45000 ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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