Install will provide annual cash flows

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1. A firm has a profit margin of 7.5% and an equity multiplier of 2.2. Its sales are $50 million, and it has total assets of $30 million. What is its ROE? Do not round intermediate calculations. Round your answer to two decimal places.

2. A project that costs $5,350 to install will provide annual cash flows of $8 for each of the next 8 years. a. What is NPV if the discount rate is 11%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. How high can the discount rate be before you would reject the project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM131831941

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