A project has an NPV of $47,000. Calculate the cost of capital of this project if it generates the following cash flows for six years after an initial investment of $196,000: (Round answer to 4 decimal places, e.g. 25.2513%.) Year 1: $47,000 Year 2: $47,000 Year 3:1 $28,000 Year 4: $75,000 Year 5: $59,000 Year 6: $70,000 Cost of capital %

A project has an NPV of $47,000. Calculate the cost of capital of this project if it generates the following cash flows for six years after an initial investment of $196,000: (Round answer to 4 decimal places, e.g. 25.2513%.) Year 1: $47,000 Year 2: $47,000 Year 3:1 $28,000 Year 4: $75,000 Year 5: $59,000 Year 6: $70,000 Cost of capital %

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...

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