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.

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