Consider an investment project in which you invest $1,000 today in order to receive $350...
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Consider an investment project in which you invest $1,000 today in order to receive $350 at the end of each of the next 5 years. If the cost of capital is 9% per year, what is the NPV?
a.$248.97 b.$393.90 c.$361.38 d.$750.00 e.$1,750.00
2. Consider an investment project in which you invest $3,500 today in order to receive $525 at the end of each of the next 10 years. If the cost of capital is 12% per year, what is the IRR and should the project be accepted?
a.
10.23%, accept project
b.
10.23%, reject project
c.
8.14%, accept project
d.
8.14%, reject project
e.
13.38%, accept project
f.
13.28%, reject project
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