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What is the highest five-year interest rate

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Reference no: EM132883159

Consider a project that requires an initial investment of $97,000 and will produce a single cash flow of $148,000 in 5 years.

Problem a. What is the NPV of this project if the 5?-year interest rate is 5.1% ?(EAR)?

Problem b. What is the NPV of this project if the 5?-year interest rate is 10.2% ?(EAR)?

Problem c. What is the highest 5?-year interest rate such that this project is still? profitable?

Reference no: EM132883159

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