Question: You are given the following information about a project: Time 0 1 2 3 4 ... 9 Expected Payoff -59000 6000 8000 8500 9500 ...

You are given the following information about a project:

Time 0 1 2 3 4 ... 9
Expected Payoff -59000 6000 8000 8500 9500 ... 16500

You are given the projects internal rate of return is 5.12%, the risk free interest rate is 2.5%, and the market risk premium is 3.8%. Determine the break even level for the projects cost of capital.

Answers:

5%

1%

2%

3%

4%

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