Using the appropriate cost per capital

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Reference no: EM131070839

Using the appropriate cost per capital to find the NPV and IRR for a project that has $500,000 initial investment, cash flows of $125,000 in the first two years, $150,000 in the years 3 and 4, and $175,000 in years 5 and 6 and a risk premium of 3% Your cost of capital is 7.0% if your capital spending is less than $700,000. It goes up to 8.0% if you exceed that $700,000 threshold.

Reference no: EM131070839

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