question archive 1A- An investment costs $26,916 and will generate cash flow of $6,000 annually for six years
1A- An investment costs $26,916 and will generate cash flow of $6,000 annually for six years
Subject:FinancePrice: Bought3
1A-
An investment costs $26,916 and will generate cash flow of $6,000 annually for six years. The firm’s cost of capital is 12 percent.
- What is the investment’s internal rate of return? Round your answer to the nearest whole number.
%
- What is the investment’s net present value? Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar.
$
1B-
An investment with total costs of $9,000 will generate total revenues of $10,000 for one year. Use a minus sign to enter negative values, if any. Round your answers to the nearest dollar.
If funds cost 18 percent, the NPV is $ .
Would your answers be different if the cost of capital is 9 percent?
If funds cost 9 percent, the NPV is $ .
