An investment has an installed cost of $638,400. The cash flows over the four-year life of...
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An investment has an installed cost of $638,400. The cash flows over the four-year life of the investment are projected to be $236,800, $257,380, $225,320, and $167,410. If the discount rate is zero, what is the NPV? If the discount rate is infinite, what is the NPV? At what discount rate is the NPV just equal to zero? Year 0 Year 1 Year 2 Year 3 Year 4 Discount rate 5555 $ (638,400) 236,800 257,380 225,320 167,410 0% Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel functions to answer this question. NPV at zero percent NPV at an infinite interest rate Zero NPV discount rate An investment has an installed cost of $638,400. The cash flows over the four-year life of the investment are projected to be $236,800, $257,380, $225,320, and $167,410. If the discount rate is zero, what is the NPV? If the discount rate is infinite, what is the NPV? At what discount rate is the NPV just equal to zero? Year 0 Year 1 Year 2 Year 3 Year 4 Discount rate 5555 $ (638,400) 236,800 257,380 225,320 167,410 0% Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel functions to answer this question. NPV at zero percent NPV at an infinite interest rate Zero NPV discount rate
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Essentials Of Corporate Finance
ISBN: 9781265414962
11th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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