I A project that provides annual cash flows of $18,100 for eight years costs $87

Question

I

A project that provides annual cash flows of $18,100 for eight years costs $87,000 today.

What is the NPV for the project if the required return is 7 percent?

What is the NPV for the project if the required return is 19 percent?

At what discount rate would you be indifferent between accepting the project and rejecting it?

II

A project has the following cash flows:

What is the NPV at a discount rate of zero percent?

What is the NPV at a discount rate of 12 percent?

What is the NPV at a discount rate of 22 percent?

What is the NPV at a discount rate of 28 percent?

*I know how to do these but I cant find my calculator and it's due soon! It shouldn't take nothing more than inputting a few things in your caculator. Thanks!

I

A project that provides annual cash flows of $18,100 for eight years costs $87,000 today.

What is the NPV for the project if the required return is 7 percent?

What is the NPV for the project if the required return is 19 percent?

At what discount rate would you be indifferent between accepting the project and rejecting it?

Explanation / Answer

NPV=21080.5030

NPV=-15425.9815

Discount rate=12.95%

2.NPV=7600

NPV=2668.463

NPV=-303.013

NPV=

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