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Question #9 Calculating NPA and IRR LO1,5 A project that provides annual cash flows of $11,700...

Question #9

Calculating NPA and IRR LO1,5 A project that provides annual cash flows of $11,700 for nine years’ costs $63,000 today is the a good project if the required return is 8 percent? What if it’s 20 percent? At what discount rate would you be indifferent between accepting the project the project and rejecting it?    

Solutions

Expert Solution

Calculate the NPV and indifferent rate as follows:

Formulas:

jeff jeffy answered 3 months ago
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