Question: In example 1 (slide 9) worked through during week 27, the required discount rate for option A is now 15%. If our main project criterion

In example 1 (slide 9) worked through during week

In example 1 (slide 9) worked through during week 27, the required discount rate for option A is now 15%. If our main project criterion remains the same, which is to provide a positive Net Present Value within 5 years (i.e. before the start of year 6). Determine whether the project meets this main requirement and answer the following by true or false (Note: use the Present Value table given in slide 8 to determine your values for PV then NPV). True or False: The project no longer meets our requirement for a positive Net Present value in year 5. True False Question 2 (40 points) With reference to project A (Slide 9, week 27). At the point of break even (when our NPV becomes positive) what is our Internal Rate of Return for project A? Note: This is a 40 points question 14.8% 14.2% 13.7% 12.8%

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