b,c &d. What is project NPV if the discount rates are 4%, 18%, 35%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 3 decimal places.) Discount Rate NPV b. 4% с. 18% d. 35%
b,c &d. What is project NPV if the discount rates are 4%, 18%, 35%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 3 decimal places.) Discount Rate NPV b. 4% с. 18% d. 35%
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
Problem 1PS
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Transcribed Image Text:b,c &d. What is project NPV if the discount rates are 4%, 18%, 35%? (Negative amount should be indicated by a minus sign. Do not
round intermediate calculations and round your final answer to 3 decimal places.)
Discount Rate
NPV
b.
4%
C.
18%
d.
35%

Transcribed Image Text:You are offered the chance to participate in a project that produces the following cash flows:
C2
-$11,800
Co
C1
+$5,400
+$4, 200
The internal rate of return is 14.0%.
a. If the opportunity cost of capital is 12%, what is the net present value of the project? (Negative amount should be indicated by a
minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)
Net present value
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