Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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You have just assessed a project involving an immediate cash outflow followed by a series of cash inflows over the next seven years by calculating the NPV and the IRR.

You now discover that you have underestimated the discount rate. Using the correct, higher discount rate will have the following effects, relative your original NPV and IRR results:

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