Cash flows over the four-year life of the investment

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Reference no: EM131047411

An investment has an installed cost of $518,800. The cash flows over the four-year life of the investment are projected to be $230,850, $247,450, $214,110, and $162,820.

a) If the discount rate is zero, what is the NPV?

b) If the discount rate is infinite, what is the NPV?

c) At what discount rate is the NPV just equal to zero?

Reference no: EM131047411

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