A project has an NPV of $47,000. Calculate the cost of capital of this project if it generates the following cash flows for six years after an initial investment of $196,000: (Round answer to 4 decimal places, e.g. 25.2513%.) Year 1: $47,000 Year 2: $47,000 Year 3:1 $28,000 Year 4: $75,000 Year 5: $59,000 Year 6: $70,000 Cost of capital %
A project has an NPV of $47,000. Calculate the cost of capital of this project if it generates the following cash flows for six years after an initial investment of $196,000: (Round answer to 4 decimal places, e.g. 25.2513%.) Year 1: $47,000 Year 2: $47,000 Year 3:1 $28,000 Year 4: $75,000 Year 5: $59,000 Year 6: $70,000 Cost of capital %
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 4BE: Internal rate of return A project is estimated to cost 463,565 and provide annual net cash flows of...
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