Using the appropriate cost per capital to find NPV and IRR

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Using the appropriate cost per capital to find the NPV and IRR for a project that has $100,000 initial investment if done in-house, cash flows of $27,000 per year for five years 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: EM131070849

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