In: Finance
Consider a project that requires an initial investment of $103,000 and will produce a single cash flow of $148,000 in 4 years.
What is the NVP of this project if the 4 year interest rate is 5.2% (EAR) ?
What is the NPV of this project if the 4 year interest rate is 9.8% (EAR)?
What is the highest 4 year interest rate such that this project is still profitable?