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Use the following information about project A to answer the following 3 questions: Project A has an initial cost of $180
Posted: Sun Jul 03, 2022 6:42 am
by answerhappygod
- Use The Following Information About Project A To Answer The Following 3 Questions Project A Has An Initial Cost Of 180 1 (31.59 KiB) Viewed 11 times
Use the following information about project A to answer the following 3
questions: Project A has an initial cost of $180,000 and would produce cash flows of $60,000 per year for the first two years of the project and $80,000 per year for the last two years of the project. The required return for the project is 12%. What is the Net Present value for project A? a. $ 29,187 b. $ 74,581 c. $100,000 d. $389,187 What is the Internal Rate of Return for project A? a. 14.03% b. 26.60% c. 19.04% d. 12.81% Should the project be undertaken? a. Yes b. No c. Not enough information