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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A project that costs $3,400 to install will provide annual cash flows of $1,000 for each of the next 6 years.

a). What is the NPV if the discount rate is 14%? (Solved, answer is NPV=388.67)

b). How high can the discount rate be before you would reject the project? (Do not round intermediate calculations. Enter answers as a percent rounded to 2 decimal places.)

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