What is the highest five-year interest rate

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Question - Consider a project that requires an initial investment of $102,000 and will produce a single cash flow of $153,000 in five years.

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

b. What is the NPV of this project if the five-year interest rate is 9.8% (EAR)?

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

Reference no: EM132793504

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