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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 56 times)

Pineapplelove6

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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. At what discount rate does her decision to renovate become untenable?
◦ 3.0%
◦ 3.3%
◦ 4.8%
◦ 4.0%


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Marked as best answer by Pineapplelove6 on Jul 9, 2019

elyse44

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