Invest $7,000 today, receive $2,000 in year 1, $4,000 in year 2, and $8,000 in year 3. o Calculate the Net Present Value assuming a hurdle rate of 10% o Calculate the internal rate of return.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 9EB: If you invest $15,000 today, how much will you have in (for further instructions on future value in...
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2. Invest $7,000 today, receive $2,000 in year 1, $4,000 in year 2, and $8,000 in year 3.
o Calculate the Net Present Value assuming a hurdle rate of 10%
o Calculate the internal rate of return.
Transcribed Image Text:2. Invest $7,000 today, receive $2,000 in year 1, $4,000 in year 2, and $8,000 in year 3. o Calculate the Net Present Value assuming a hurdle rate of 10% o Calculate the internal rate of return.
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