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For questions 15 and 16 Given the following data for a proposed project Initial cost outlay Annual savings in operating costs N18,000 Salvage value Useful life Cost of capital N75,000 N3,000 7 years 12% 15. What is the project' NPV? A. N7,148 B. N8,505 C. N5,791 D. N18,004 16. Ignoring the salvage value of N3,000, what is the project's Internal rate of return? A. 14.0% B. 12.0% C. 14.95% D. 16.2%

For questions 15 and 16 Given the following data for a proposed project Initial cost outlay Annual savings in operating costs N18,000 Salvage value Useful life Cost of capital N75,000 N3,000 7 years 12% 15. What is the project' NPV? A. N7,148 B. N8,505 C. N5,791 D. N18,004 16. Ignoring the salvage value of N3,000, what is the project's Internal rate of return? A. 14.0% B. 12.0% C. 14.95% D. 16.2%

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
Problem 1PS
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Problem 15 & 16

For questions 15 and 16 Given the following data for a proposed project Initial cost outlay Annual savings in operating costs N18,000 Salvage value Useful life Cost of capital N75,000 N3,000 7 years 12% 15. What is the project' NPV? A. N7,148 B. N8,505 C. N5,791 D. N18,004 16. Ignoring the salvage value of N3,000, what is the project's Internal rate of return? A. 14.0% B. 12.0% C. 14.95% D. 16.2%
Transcribed Image Text:For questions 15 and 16 Given the following data for a proposed project Initial cost outlay Annual savings in operating costs N18,000 Salvage value Useful life Cost of capital N75,000 N3,000 7 years 12% 15. What is the project' NPV? A. N7,148 B. N8,505 C. N5,791 D. N18,004 16. Ignoring the salvage value of N3,000, what is the project's Internal rate of return? A. 14.0% B. 12.0% C. 14.95% D. 16.2%
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