Question

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4. Project Y has initial cost of $10,000, and the discount rate for each project is...

4. Project Y has initial cost of $10,000, and the discount rate for each project is 12%. Expected cash flow is given below for project:

Year Project Y

1. 2,000

2. 2,000

3 3,000

4 3,000

Calculate NPV for this project.

Number of units bought. Price paid per unit ($)

Item Year 1 Year 2 Year 1 Year 2

A 121 141 $9 $10

B 149 163 $21 $23

C 173 182 $26 $27

D 194 103 $31 $33

5. Calculate a base-weighted and current- weighted index. Years 1 is base and year 2 is current.

Expert Solution

ekkarill92 answered 1 year ago

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