Question: Problem 2. (3 points) Determine the rate of return, NPV, Benefit Cost Ratio, and growth ROR for the following project without considering taxes. All costs
Problem 2. (3 points) Determine the rate of return, NPV, Benefit Cost Ratio, and growth ROR for the following project without considering taxes. All costs and revenues are expressed in escalated dollar. The hurdle rate is 15% 2019 Year Revenue Op. Cost Capital Cost 2020 $5,000 $ (3,500) 2021 $11,000 $(4,500) 2022 $11,000 S(4,500) S (10,000) 2023 $ 11,000 S (4,500) 2024 $11,000 S (4,500) 2025 $11,000 $ (4,500) 2026 $ 11,000 $ (4,500) 2027 $11,000 $(4,500) $(10,000)
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