Ironwood Charities is considering an investment in one of its buildings that is expected to return the
Question:
Ironwood Charities is considering an investment in one of its buildings that is expected to return the following cash flows:
This schedule includes all cash inflows from the project, which will also require an immediate $140,000 cash outlay. The organization is tax-exempt; therefore, taxes need not be considered.
Required
a. What is the net present value of the project if the appropriate discount rate is 8 percent?
b. What is the net present value of the project if the appropriate discount rate is 4 percent?
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a At 8 b At 4 Net cash flow PV factor 8 ...View the full answer
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