Discount rate-opportunity cost of capital

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Lamar company is considering a project that would have an 8 year life and require $2,500,000 investment in equipment. At the end of 7 years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows: The company's discount rate is 11%. Net annual cash flow from the project is expected to be $550,000. The company's discount rate = opportunity cost of capital

Reference no: EM13987832

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