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Author Question: Use the information for the question(s) below.The owner of a hair salon spends $1,000,000 to ... (Read 90 times)

joesmith1212

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on: Jul 9, 2019
Use the information for the question(s) below.




The owner of a hair salon spends $1,000,000 to renovate its premises, estimating that this will increase her cash flow by $220,000 per year.  She constructs the above graph, which shows the net present value (NPV) as a function of the discount rate. If her discount rate is 6%, should she accept the project?
◦ No, because the NPV is negative at that rate.
◦ Yes, because the NPV is positive at that rate.
◦ No, because the NPV is positive at that rate.
◦ Cannot be determined from the information given.
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
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Marked as best answer by joesmith1212 on Jul 9, 2019

alexisweber49

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Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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joesmith1212

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Reply 2 on: Jul 9, 2019
YES! Correct, THANKS for helping me on my review

kthug

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Reply 3 on: Yesterday
Excellent

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