Problembarrett pharmaceuticals is considering a drug, Ask an Expert

Finance

Problem:

Barrett Pharmaceuticals is considering a drug project that costs $174,959 today and is expected to generate end-of-year annual cash flows of $13,959, forever.

Required:

At what discount rate would Barrett be indifferent between accepting and rejecting the project?

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148379

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