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Problem:

A project that provides annual cash flows of $1,930 for eight years costs $7,700 today. Is this a good project if the required return is 8%? What if 24%?

Required:

Question: At what discount rate would be indifferent between accepting the project and rejecting it?

Note: Be sure to show how you arrived at your answer.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91148772

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