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What is the highest 4?-year interest rate

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Reference no: EM132799652

Consider a project that requires an initial investment of $104,000 and will produce a single cash flow of $147,000 in 4 years.

a. What is the NPV of this project if the 4?-year interest rate is 4.8% ?(EAR)?

b. What is the NPV of this project if the 4?-year interest rate is 9.8% ?(EAR)?

c. What is the highest 4?-year interest rate such that this project is still? profitable?

Reference no: EM132799652

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