Question: Chapter 8 Problem 14 The following information is available about an investment opportunity. Investment will occur at time 0 and : Initial Cost 28 million

Chapter 8 Problem 14 The following information is available about an investment opportunity. Investment will occur at time 0 and : Initial Cost 28 million Unit Sales 400,000 Selling Price per unit, this year $60.00 Variable cost per unit, this year $42.00 Life expectancy 8 years Salvage Value $0 Depreciation Straight-Line Tax rate 37% Nominal Discount rate 10.00% Rea Iy discount rate 10.00% Ination Rate 0.00% a Prepare spreadsheet to estimate the projects annual ATCF's. b Calculate the investments internal rate of return and its NPV

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