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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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
Transcribed Image Text:1. Consider a project with the following cash
flows: year 1, -$400; year 2, $200; year 3,
$600; year 4, $900; year 5, $1000; year 6,
$250; year 7, $230. Assume a discount rate of
15% per year.
a. Compute the project's NPV if cash flows
occur at the ends of the respective years.
b. Compute the project's NPV if cash flows
occf+(ur at the beginnings of the
respective years.
c. Compute the project's NPV if cash flows
occur at the middles of the respective
years.
**Please answer using Excel Functions and show
formulas**
Expert Solution
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