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problem: The Fast Track Bikes will take six years and the cost is $200,000 per year. Once produce the product is expect to make dollar 300,000 per year for 10 years. The cost of capital is ten percent.

[A] Compute the NPV
[B] Compute IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.

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  • Category:- Basic Finance
  • Reference No.:- M918378

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