?(NPV with varying required rates of return?) Gubanich Sportswear is considering building a new factory to...

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?(NPV with varying required rates of return?) GubanichSportswear is considering building a new factory to producealuminum baseball bats. This project would require an initial cashoutlay of ?$6,000,000 and would generate annual free cash inflowsof ?$1,000,000 per year for 6 years. Calculate the? project's NPV?given:
a. A required rate of return of 9 percent
_
b. A required rate of return of 11 percent

c. A required rate of return of 14 percent

d. A required rate of return of 17 percent
____

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4.1 Ratings (848 Votes)

a NPV 151408141 Working Present value of annuity of 1 11ini Where 110096009 i 9 448591859 n 6 Present value of cash inflows Annual cash inflows x Present value of annuity of 1 1000000 x 4485919 448591859 See Answer

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?(NPV with varying required rates of return?) GubanichSportswear is considering building a new factory to producealuminum baseball bats. This project would require an initial cashoutlay of ?$6,000,000 and would generate annual free cash inflowsof ?$1,000,000 per year for 6 years. Calculate the? project's NPV?given:a. A required rate of return of 9 percent_____b. A required rate of return of 11 percent____c. A required rate of return of 14 percent______d. A required rate of return of 17 percent______