Computation of npv of the project at various interest rates

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Reference no: EM1313891

Computation of NPV of the project at various interest rates

Consider a project that requires an initial investment of $100,000 and will produce a single cash flow of $150,000 in five years.

a) What is the NPV of this project if the five-year interest rate is 5% (EAR)?

b) What is the NPV of this project if the five-year interest rate is 10% (EAR)?

c) What is the highest five-year interest rate such that this project is still profitable?

Reference no: EM1313891

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