Project has annual cash flows-what is the project npv

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Reference no: EM131913334

1. A project has annual cash flows of $6,000 for the next 10 years and then $5,500 each year for the following 10 years. The IRR of this 20-year project is 12.17%. If the firm's WACC is 12%, what is the project's NPV? Round your answer to the nearest cent.

2. If one system future value is $11,790,890 and another one is $11,800,590. Which one is the best system?

3. Effective cost of Bank Loans. Assume all loan problems are for $100,000 and repayable in exactly one year in a lump sum.

Interest rate is 5%, no fees, interest is paid in arrears, compensating balance required is 10%. Effective cost of the bank loan: ___________________

Reference no: EM131913334

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