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Author Question: The NPV of a project with an initial investment of 2,500 that provides after-tax operating cash ... (Read 33 times)

sc00by25

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on: Jul 10, 2018
The NPV of a project with an initial investment of 2,500 that provides after-tax operating cash flows of 500 per year for four years where the firm's cost of capital is 15 percent is 427.49.
 
  Indicate whether the statement is true or false

Question 2

Timothy borrows 6,930 from the bank. For a four-year loan, the bank requires annual end-of-year payments of 2,281.86. Calculate the interest rate on the loan.
 
  What will be an ideal response?


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jointhecircus

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Reply #1 on: Jul 10, 2018
Answer to Question 1

FALSE

Answer to Question 2

Using financial calculator: PV=6930, PMT= -2281.86, N=4, FV=0, CPT I= 12


sc00by25

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

olderstudent

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Reply 3 on: Yesterday
Excellent

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