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:Consider this project with an internal rate of return of 15.5%. The following are the
Year Cash Flow
0
+$ 105
1
2
-65
-65
a. What is project NPV if the discount rate is 13%?
Note: Negative amount should be indicated by a minus sign. Do not round
2 decimal places.
NPV
b. Should you accept the project?
Yes
O No
< Pr
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