Question: Use the table for the question below. Visby Rides, a limousine hire company, is considering buying some new luxury cars. After extensive research, they come

Use the table for the question below.

Visby Rides, a limousine hire company, is considering buying some new luxury cars. After extensive research, they come up with the above estimates of free cash flow from this project. By how much could the opportunity cost of capital rise before the net present value (NPV) of this project is zero, given that it is currently 10%?

Answer

a.

by 19.5%

b.

by 22.5%

c.

by 27.5%

d.

by 25.5%

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