The internal rate of return is 20 percent the npv assuming

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Consider the following project:


Period


0

1

2

3

Net cash flow

-100

0

78.55

78.55

The internal rate of return is 20 percent. The NPV, assuming a 20 percent opportunity cost of capital, is exactly zero. Calculate the expected economic income and economic depreciation in each year.

Reference no: EM13573699

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