Consider project that requires an initial investment

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Consider a project that requires an initial investment of $105,000 and will produce a single cash flow of $146,000 in 6 years.

a. What is the NPV of this project if the 6-year interest rate is 4.9% (EAR)?

b. What is the NPV of this project if the 6-year interest rate is 10.2% (EAR)?

c. What is the highest 6-year interest rate such that this project is still? profitable?

a. What is the NPV of this project if the 6-year interest rate is 4.9% (EAR)?

The NPV in this case (EAR equals 4.9 %) is $ . (Round to the nearest dollar.)

Reference no: EM131575386

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