Nielsen NV has a project with initial investment requiring $-130,000 and the following cash flows will be generated because of the project: $32,500; $54,000; $61,000; and $42,000 respectively at the end of each year for the next four years. If the required rate of return is 0.17, find the Net Present Value (NPV) of the project. none of the answers is correct O $1,804 O-$1,660 -$2,275 -$902

Nielsen NV has a project with initial investment requiring $-130,000 and the following cash flows will be generated because of the project: $32,500; $54,000; $61,000; and $42,000 respectively at the end of each year for the next four years. If the required rate of return is 0.17, find the Net Present Value (NPV) of the project. none of the answers is correct O $1,804 O-$1,660 -$2,275 -$902

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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A project that will provde annual cash flows of $3,050 for nine years costs $10,200 today. a. At a required return of 11 percent, what is the NPV of the project? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. At a required return of 27 percent, what is the NPV of the project? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. At what discount rate would you be indifferent between accepting the project and rejecting it? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. NPV b. NPV c. Discount rate %
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