Question: A project that costs $ 6 4 6 , 3 4 1 . 2 1 to install will provide annual cash flows of $ 1

A project that costs $646,341.21 to install will provide annual cash flows of $188,000.00 for each of the next 13 years.
a. Calculate the NPV if the discount rate is 11.10%?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
b.Is this project worth pursuing?
c. How high can the discount rate be before you would reject the project (i.e. What is the projects IRR)?(Do not round intermediate calculations. Round your answer to 2 decimal places.)Discount rate %

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!