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You are analyzing a project and have prepared the following data:   a. Based on the net present value of this project, should you reject or accept this project? (Please provide the formulas for calculation or the keys applied if a financial calculator is used) b. What is the internal rate of return (IRR) of this project? Should you reject or accept this project? (Please use a financial calculator and list the keys you use)

You are analyzing a project and have prepared the following data:   a. Based on the net present value of this project, should you reject or accept this project? (Please provide the formulas for calculation or the keys applied if a financial calculator is used) b. What is the internal rate of return (IRR) of this project? Should you reject or accept this project? (Please use a financial calculator and list the keys you use)

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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You are analyzing a project and have prepared the following data:
 
a. Based on the net present value of this project, should you reject or accept this project? (Please provide the formulas for calculation or the keys applied if a financial calculator is used)

b. What is the internal rate of return (IRR) of this project? Should you reject or accept this project? (Please use a financial calculator and list the keys you use)

Cash flow -$169,000 $ 46,200 $ 87,300 $ 41,000 $ 39,000 Year 1 3 4 Required payback period Required AAR Required return 2.5 years 7.25 percent 8.50 percent
Transcribed Image Text:Cash flow -$169,000 $ 46,200 $ 87,300 $ 41,000 $ 39,000 Year 1 3 4 Required payback period Required AAR Required return 2.5 years 7.25 percent 8.50 percent
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