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Consider the following cash flows:   C0=-$42 C1=+$38 C2=+$38 C3=+$38 C4=-$76 a. Which two of the following rates are the IRRs of this project? (You may select more than one answer.)   check all that apply 2.5% 7.8% 14.3% 32.5% 40.0%     b. What is project NPV if the discount rates are 5%, 20%, 40%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 3 decimal places.)

Consider the following cash flows:   C0=-$42 C1=+$38 C2=+$38 C3=+$38 C4=-$76 a. Which two of the following rates are the IRRs of this project? (You may select more than one answer.)   check all that apply 2.5% 7.8% 14.3% 32.5% 40.0%     b. What is project NPV if the discount rates are 5%, 20%, 40%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 3 decimal places.)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Consider the following cash flows:

 

C0=-$42

C1=+$38

C2=+$38

C3=+$38

C4=-$76

a. Which two of the following rates are the IRRs of this project? (You may select more than one answer.)

 

check all that apply

  • 2.5%
  • 7.8%
  • 14.3%
  • 32.5%
  • 40.0%

 


 

b. What is project NPV if the discount rates are 5%, 20%, 40%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 3 decimal places.)

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