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2. A project that provides annual cash flows of $15,300 for nine years costs $74,000 today. Is this a good project if the required return is 8 percent? What if it's 20 percent? At what discount rate would you be indifferent between accepting the project and rejecting it? SHOW WORK EXACTLY HOW YOU WOULD TYPE IT INTO EXCEL Annual cash flows$15,300 Required Years Input area: Costs$74,000 Required Return8% 9 Return20% (Use cells A6 to B10 from the given information to complete this question. You must use the built-in Excel function to answer this question.) Output area: NPV at 8% NPV at 20% IRR

2. A project that provides annual cash flows of $15,300 for nine years costs $74,000 today. Is this a good project if the required return is 8 percent? What if it's 20 percent? At what discount rate would you be indifferent between accepting the project and rejecting it? SHOW WORK EXACTLY HOW YOU WOULD TYPE IT INTO EXCEL Annual cash flows$15,300 Required Years Input area: Costs$74,000 Required Return8% 9 Return20% (Use cells A6 to B10 from the given information to complete this question. You must use the built-in Excel function to answer this question.) Output area: NPV at 8% NPV at 20% IRR

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. A project that provides annual cash flows of $15,300 for nine years costs $74,000 today. Is this a good project if the required return is 8 percent? What if it's 20 percent? At what discount rate would you be indifferent between accepting the project and rejecting it? SHOW WORK EXACTLY HOW YOU WOULD TYPE IT INTO EXCEL Annual cash flows$15,300 Required Years Input area: Costs$74,000 Required Return8% 9 Return20% (Use cells A6 to B10 from the given information to complete this question. You must use the built-in Excel function to answer this question.) Output area: NPV at 8% NPV at 20% IRR
Transcribed Image Text:2. A project that provides annual cash flows of $15,300 for nine years costs $74,000 today. Is this a good project if the required return is 8 percent? What if it's 20 percent? At what discount rate would you be indifferent between accepting the project and rejecting it? SHOW WORK EXACTLY HOW YOU WOULD TYPE IT INTO EXCEL Annual cash flows$15,300 Required Years Input area: Costs$74,000 Required Return8% 9 Return20% (Use cells A6 to B10 from the given information to complete this question. You must use the built-in Excel function to answer this question.) Output area: NPV at 8% NPV at 20% IRR
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