An investment with total costs of $9,000 will generate total revenues of $10,000 for one year. Round your answers to the nearest dollar. a. If funds cost 11 percent, the NPV is $ b. What would be your advice to management? Would your answers be different if the cost of capital is 7 percent? c. If funds cost 7 percent, the NPV is $ d. What is your advice to management?
An investment with total costs of $9,000 will generate total revenues of $10,000 for one year. Round your answers to the nearest dollar. a. If funds cost 11 percent, the NPV is $ b. What would be your advice to management? Would your answers be different if the cost of capital is 7 percent? c. If funds cost 7 percent, the NPV is $ d. What is your advice to management?
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
Problem 1PS
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Transcribed Image Text:An investment with total costs of $9,000 will generate total revenues of $10,000 for one year. Round
your answers to the nearest dollar.
a. If funds cost 11 percent, the NPV is $
b. What would be your advice to management?
Would your answers be different if the cost of capital is 7 percent?
c. If funds cost 7 percent, the NPV is $
d. What is your advice to management?
INDV
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