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A project has an NPV of $53,000. Calculate the cost of capital of this project if it generates the following cash flows for six years after an initial investment of $208,000: (Round answer to 4 decimal places, e.g. 25.2513%.) Year 1: $53,000 Year 2: $53,000 Year 3: $34,000 Year 4: $81,000 Year 5: $65,000 Year 6: $76,000 % Cost of capital

A project has an NPV of $53,000. Calculate the cost of capital of this project if it generates the following cash flows for six years after an initial investment of $208,000: (Round answer to 4 decimal places, e.g. 25.2513%.) Year 1: $53,000 Year 2: $53,000 Year 3: $34,000 Year 4: $81,000 Year 5: $65,000 Year 6: $76,000 % Cost of capital

Essentials Of Investments
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 has an NPV of $53,000. Calculate the cost of capital of this project if it generates the following cash flows for six years after an initial investment of $208,000: (Round answer to 4 decimal places, e.g. 25.2513%.) Year 1: $53,000 Year 2: $53,000 Year 3: $34,000 Year 4: $81,000 Year 5: $65,000 Year 6: $76,000 % Cost of capital
Transcribed Image Text:A project has an NPV of $53,000. Calculate the cost of capital of this project if it generates the following cash flows for six years after an initial investment of $208,000: (Round answer to 4 decimal places, e.g. 25.2513%.) Year 1: $53,000 Year 2: $53,000 Year 3: $34,000 Year 4: $81,000 Year 5: $65,000 Year 6: $76,000 % Cost of capital
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