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problem: Consider a project that need an initial investment of $100,000 & will produce a single cash flow of $150,000 in 5 years.

[A] find out the NPV of this project if the 5year interest rate is 10% (EAR)?

[B] find out the NPV of this project if the 5year interest rate is 5% (EAR)?

[C] find out the highest 5year interest rate such that this project is still profitable?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M918585

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